MARCH 20, 2007- Committed to the Committee of the Whole House on the State of the Union and ordered to be printed

MAKING EMERGENCY SUPPLEMENTAL APPROPRIATIONS FOR THE FISCAL YEAR ENDING SEPTEMBER 30, 2007, AND FOR OTHER PURPOSES

110TH CONGRESS

Report

HOUSE OF REPRESENTATIVES

1st Session

110-60

--MAKING EMERGENCY SUPPLEMENTAL APPROPRIATIONS FOR THE FISCAL YEAR ENDING SEPTEMBER 30, 2007, AND FOR OTHER PURPOSES

March 20, 2007- Committed to the Committee of the Whole House on the State of the Union and ordered to be printed

Mr. OBEY of Wisconsin, from the Committee on Appropriations, submitted the following

R E P O R T

together with

MINORITY VIEWS

[To accompany H.R. 1591]

The Committee on Appropriations submits the following report in explanation of the accompanying bill making emergency supplemental appropriations for the fiscal year ending September 30, 2007, and for other purposes.

BILL SUMMARY

The bill recommended by the Committee includes $124,330,636,000 in supplemental appropriations for fiscal year 2007, as detailed below.

TITLE I--SUPPLEMENTAL APPROPRIATIONS FOR THE GLOBAL WAR ON TERROR

CHAPTER 1

DEPARTMENT OF AGRICULTURE

FOREIGN AGRICULTURAL SERVICE

PUBLIC LAW 480 TITLE II GRANTS

The Committee provides $450,000,000, to remain available until expended, for Public Law 480 Title II grants.

CHAPTER 2

DEPARTMENT OF JUSTICE

LEGAL ACTIVITIES

SALARIES AND EXPENSES, GENERAL LEGAL ACTIVITIES

The recommendation includes $1,648,000 for General Legal Activities for the Criminal Division to provide litigation support services to the Special Inspector General for Iraqi Reconstruction for its ongoing investigations and cases involving corruption in the reconstruction of Iraq.

The recommendation does not include the President's request for $2,445,000 to create Iraq and Afghanistan Support Units within General Legal Activities, Criminal Division. The Committee supports Justice Department efforts to train and assist law enforcement, corrections, and justice-sector personnel in Iraq; and to provide support for antiterrorism, counter-narcotics, law reform and judicial assistance in Afghanistan. These activities, however, can be supported through monies available to the Secretary of State.

SALARIES AND EXPENSES, UNITED STATES ATTORNEYS

The recommendation provides $5,000,000 for the U.S. Attorneys for extraordinary litigation expenses associated with terrorism prosecutions.

UNITED STATES MARSHALS SERVICE

SALARIES AND EXPENSES

The recommendation includes $2,750,000 for the U.S. Marshals Service to provide security at high-threat terrorist trials in the United States.

The recommendation does not include the Administration's additional request of $12,171,000 for the U.S. Marshals. The Committee supports the mission of the U.S. Marshals to help the government of Afghanistan to establish judicial and witness security in Afghanistan. However, the proposals to deploy U.S. Marshals to secure the Afghanistan judicial complex and to train and equip a Judicial and Witness Security Protection Unit of the Counter-Narcotic Police of Afghanistan can be supported through monies available to the Secretary of State.

NATIONAL SECURITY DIVISION

SALARIES AND EXPENSES

The recommendation includes $1,736,000 for the National Security Division to support the Global War on Terror.

FEDERAL BUREAU OF INVESTIGATION

SALARIES AND EXPENSES

The recommendation includes $118,260,000 for the Federal Bureau of Investigation for operations in Iraq and Afghanistan and for enhanced counterterrorism activities.

DRUG ENFORCEMENT ADMINISTRATION

SALARIES AND EXPENSES

The recommendation includes $8,468,000 for the Drug Enforcement Administration to implement its narco-terrorism initiative and Operation Breakthrough, and to conduct financial investigations.

The Committee notes that NATO's International Security Assistance Force (ISAF) recently offered logistical support to a Drug Enforcement Administration Foreign Advisory and Support Team (DEA FAST) mission in Kunduz province. The Committee directs the DEA Administrator to submit a report on a plan to target and arrest Afghan Drug Kingpins in Helmand and Kandahar provinces by July 31, 2007. This report shall also include the number of DEA counter-narcotic operations undertaken with the support of the Department of Defense and ISAF, and shall identify additional tactical equipment that can enhance FAST team missions.

BUREAU OF ALCOHOL, TOBACCO, FIREARMS AND EXPLOSIVES

SALARIES AND EXPENSES

The recommendation includes $4,000,000 for the Bureau of Alcohol, Tobacco, Firearms and Explosives for necessary costs of the operations in Iraq.

FEDERAL PRISON SYSTEM

SALARIES AND EXPENSES

The recommendation includes $17,000,000 for the Federal Prison System to establish a counter-terrorism unit to effectively monitor incarcerated terrorists, collect intelligence, and coordinate with and disseminate relevant information to other federal law enforcement agencies. Within the total, funds are also provided for translation services and to purchase counter-terrorism surveillance equipment.

CHAPTER 3

DEPARTMENT OF DEFENSE--MILITARY

OVERVIEW

COMMITTEE RECOMMENDATION

In title 1, chapter 3, the Committee recommends total new appropriations of $95,529,712,000, an increase of $4,000,737,000 over the supplemental amount requested by the President.

To prepare for its deliberations on the President's fiscal year 2007 supplemental request, the Committee conducted 14 hearings and briefings. These meetings featured senior Defense Department policy officials and uniformed military leaders, as well as outside experts on mental health care issues related to combat. In general, the information received by the Committee led to several important conclusions:

The readiness of U.S. military forces--especially the non-deployed ground forces--has declined significantly. Without additional resources or changes in the military's deployment requirements, this adverse trend is likely to continue.

The costs of war continue to increase. The repair and replacement of battle-worn equipment, the challenge to adequately man and train our all-volunteer force, and the increasing reliance on private contractors to supply basic security and logistics services all have forced the monthly costs of the war to levels well beyond those initially contemplated.

The types and intensity of violence, especially in Iraq, sadly have resulted in severe casualties to U.S. troops that have both short-term and long-term consequences. The military health care system is facing a growing need to care for troops with brain injuries and post-traumatic stress syndrome for which additional resources are needed.

Supporting our troops in the field, and caring for them and their families, is the nation's first order of business during a time of war. Our country also must be prepared to address other potential threats to its national interests. The Committee recommendations provide robust funding to meet both of these tests in a fiscally responsible manner:

In addition to fully funding the President's request for military operations, the Committee proposes adding $2,500,000,000 to address training and equipping shortfalls in forces not deployed to theaters of operation. These funds are set aside in a new account entitled the `Strategic Reserve Readiness Fund'.

The Committee recommends increasing funds for the war in Afghanistan to counter rising conflict in that terrorist-laden region. An additional $1,000,000,000 is provided to enhance our military operations there.

The Committee recommendations fully fund the President's request to train and equip the Iraq and Afghanistan security forces. As such, the bill includes $5,906,400,000 for the Afghanistan Security Forces Fund and $3,842,300,000 for the Iraq Security Forces Fund.

The Committee recommends a total appropriation of $2,789,703,000 for the Defense Health program. This is an increase of $1,716,556,000 above the budget request. The additional funding supports new initiatives to enhance medical services for active duty forces and mobilized reserves, and their family members. These initiatives include: $450,000,000 for Post Traumatic Stress Disorder/Counseling; $450,000,000 for Traumatic Brain Injury care and research; $730,000,000 to cover a funding shortfall created by Congress having disapproved the Department's proposal to increase health insurance premiums and fees on military beneficiaries; $61,950,000 for amputee care; $12,000,000 for care givers support programs; and, $14,800,000 for burn care.

The recommendations propose an increase of $17,000,000 for the Department's Family Advocacy program to treat child and spouse abuse.

The Committee bill includes an additional $1,402,286,000 to cover the full cost of housing allowances for military members in fiscal year 2007.

A total of $2,321,323,000 to cover the full cost of fielding an additional 36,000 Army troops and 9,000 Marines is recommended.

The Committee's proposals allocate $1,411,000,000 to purchase the Mine Resistant Ambush Protected (MRAP) family of vehicles, an increase of $311,000,000 above the request. Combined with funding provided in Title IX of the Fiscal Year 2007 Defense Appropriations Act, a total of $2,071,000,000 is made available for MRAP procurement in fiscal year 2007.

A total of $2,432,800,000 is recommended for the Joint IED Defeat fund, the same amount as requested by the President.

For Army procurement accounts, the Committee approves a total of $14,975,311,000, which is an increase of $122,850,000 above the request. The recommendations include: $996,651,000 for Abrams tank upgrades; $857,685,000 for Stryker vehicles; $994,152,000 for tactical radios; $2,183,462,000 for tactical trucks; $866,791,000 for up-armored HMMWVs; $636,000,000 for Bradley fighting vehicle upgrades and armor protection; and $681,500,000 to replace expended stocks of ammunition.

The Committee also approves $225,261,000 for the reconstitution of equipment for the Navy's Construction Battalion units, an increase of $51,400,000 above the request.

To address the growing threat against U.S. air operations in Iraq and Afghanistan, the Committee's proposals include an increase of $198,000,000 for air survivability equipment for the Marine Corps and $706,000,000 for infrared countermeasures for Air Force aircraft, an increase of $222,000,000 above the President's request.

Finally, the Committee recommendations fully fund the President's request for providing support to coalition partners in Iraq and Afghanistan.

A detailed review of the Committee's recommendations for programs funded in this chapter is provided in the following pages.

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The following table summarizes, by appropriations account or general provision, the Committee's recommendations compared to the President's budget request.

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SELECT INTELLIGENCE OVERSIGHT PANEL

The Committee is pleased to recognize the Select Intelligence Oversight Panel (SIOP), established by H. Res 35 during the 1st session of the 110th Congress to provide more robust oversight of the nation's intelligence activities.

The SIOP, a bi-partisan panel comprised of members from the Permanent Select Committee on Intelligence and the Appropriations Committee, held various hearings and briefings with representatives of the Intelligence Community as it reviewed the fiscal year 2007 supplemental request. The SIOP recommendations with respect to funding activities and programs of the Intelligence Community are reflected in the funding levels included in the accompanying bill. In general, the fiscal year 2007 supplemental funding levels recommended for intelligence activities continue robust investments in infrastructure, analytic capabilities, and human expertise.

CLASSIFIED ANNEX

The Committee's recommendations for intelligence activities are published in a separate and detailed classified annex. The intelligence community, Department of Defense, and other organizations are expected to fully comply with the recommendations and directions in the classified annex accompanying this Act.

REPORTING REQUIREMENTS

The Committee directs the Secretary of Defense to provide a report to the congressional defense committees within 30 days of enactment of this legislation on the allocation of the funds within the accounts listed in this chapter. The Secretary shall submit updated reports 30 days after the end of each fiscal quarter until funds listed in this chapter are no longer available for obligation. The Committee directs that these reports shall include: a detailed accounting of obligations and expenditures of appropriations provided in this chapter by program and subactivity group for the continuation of the war in Iraq and Afghanistan; and a listing of equipment procured using funds provided in this chapter. The Committee expects that in order to meet unanticipated requirements, the Department of Defense may need to transfer funds within these appropriations accounts for purposes other than those specified in this report. The Committee directs the Department of Defense to follow normal prior approval reprogramming procedures should it be necessary to transfer funding between different appropriations accounts in this chapter.

Additionally, the Committee directs that the reporting requirements of section 9010 of Public Law 109-289, the Department of Defense Appropriations Act, 2007, regarding military operations and stability in Iraq shall apply to the funds appropriated in this Act.

OPERATIONS IN AFGHANISTAN

According to current reports, violence in Afghanistan has escalated this past year. In fact, military commanders recently testified to the Committee that the Taliban is strengthening. The Committee believes that constraining the violence in Afghanistan and developing a stable, politically viable, and economically effective Afghanistan are critical to winning the war against terror. As such, the Committee recommends an additional $1,000,000,000 to support operations in Afghanistan. The recommended additional funding is distributed as follows:

Additional Funding for OEF

Account

$'s millions

Operation and Maintenance, Army

500

Operation and Maintenance, Navy

200

Operation and Maintenance, Marine Corps

100

Operation and Maintenance, Air Force

140

Operation and Maintenance, Defense-wide

30

Other Procurement, Air Force

30

Total

1,000

POST TRAUMATIC STRESS DISORDER AND TRAUMATIC BRAIN INJURY

The uniquely-prevalent wound in the global war on terrorism is traumatic brain injury (TBI), that has segmental bone defects and large soft tissue wounds. TBI can be caused by blast exposure, gunshot wounds, motor vehicle injury, or other events. In addition, life threatening injuries can trigger terror, horror and helplessness. This creates a double jeopardy in which veterans are simultaneously exposed to the risk of post traumatic stress disorder (PTSD) and concussive head injury. The severely wounded are routinely screened for head trauma; however, many others are not.

OEF and OIF veterans who may have suffered repeated mild traumatic brain injuries, including concussions, may go undiagnosed in the theater. Symptoms may surface, after the servicemembers have returned home. Given that certain symptoms of mild, repeated concussive head injury and post traumatic stress disorder are similar, (for example, concentration difficulties, sleep disruption, and irritability) and are likely to occur in settings of a high war zone traumatic stress exposure, servicemembers with dual diagnosis PTSD and TBI present unique diagnostic and treatment challenges.

The Committee believes that we have not invested sufficient funds in our understanding of pre-hospitalization trauma and disease and non-battle injury treatment. The Committee urges the further development of disease and trauma registries that will assist in tracking all aspects of far-forward medical care.

If a servicemember is correctly diagnosed with PTSD or TBI, the better chance he or she has of a full recovery. It is therefore critical that all health care providers are given the resources that they need to make accurate, timely referrals for appropriate treatment and that servicemembers have high priority access to such services. Therefore, the Committee provides an additional $450,000,000 to stimulate research and educate health care providers, ensure timely diagnosis, and increase access to treatment for post traumatic stress disorder. An additional $450,000,000 is recommended for traumatic brain injury care and research, including research on bone regeneration and soft tissue healing.

By increasing funding for post traumatic stress disorder and traumatic brain injury treatment, the Committee believes that the Defense Department now will have significant resources to dramatically improve screening for risk factors, diagnosis, treatment, counseling, research, facilities, and equipment to prevent or treat these illnesses.

MINE RESISTANT AMBUSH PROTECTED (MRAP) VEHICLE

The Committee commends the fast action of the military services in using an innovative approach to acquire the Mine Resistant Ambush Protected (MRAP) family of vehicles. MRAP vehicles are urgently needed in the theater of operations, and will ultimately save the lives of our soldiers, sailors, airmen and marines by augmenting the current level of mine and Improvised Explosive Devises (IED) protection provided by the up-armored HMMWV. The MRAP has a new V-shaped hull, a raised chassis, and various other force protection assets.

While the Committee acknowledges the tremendous joint efforts of the services to address this urgent need, it is dismayed by the shortfall of funding requested by the Department of Defense in its supplemental request. The Committee strongly encourages the Defense Department to work with Congress to fully resource the requirements as they are further defined.

In an effort to address the shortfall, the Committee includes $1,411,000,000 for the MRAP in this recommendation, an increase of $311,000,000 above the request. When combined with appropriations provided in Title IX of the fiscal year 2007 Defense Appropriations Act, the Department will have a total of $2,071,000,000 available to purchase MRAP vehicles. Based on information provided by DoD, the Committee believes this funding amount to be sufficient to procure all MRAP vehicles that can be manufactured in fiscal year 2007, using reasonable production rate assumptions. As such, the Committee has fully funded the maximum production capacity through the end of the fiscal year for the Low Rate Initial Production (LRIP) contracts that are currently issued by the joint program office.

Should production capacity expand to levels beyond those assumed by the Committee recommendation, the Committee has made funds available for MRAPs in the Strategic Readiness Reserve Fund.

MILITARY PERSONNEL

The Committee recommends an additional appropriation of $13,566,940,000 for Military Personnel, $1,422,287,000 above the budget request for fiscal year 2007. In total, $18,953,445,000 is provided in supplemental appropriations for Global War on Terror activities funded under this heading in fiscal year 2007.

COMMITTEE RECOMMENDATION

The Committee recommends a total of $13,566,940,000 for the incremental costs of pay and allowances for active duty and Ready Reserve personnel deployed overseas in support of military operations in Iraq and Afghanistan, or otherwise supporting the Global War on Terror worldwide. These include Basic Allowance for Housing, Imminent Danger Pay, Family Separation Allowance, Hardship Duty Pay, Foreign Language Proficiency Pay, Combat-Related Injury pay, Subsistence, and other casualty benefits associated with the death or traumatic injury of service members. The recommendation includes $1,862,004,000 to support a fiscal year 2007 end-strength increase of 36,000 soldiers and $459,319,000 for the Marine Corps to augment its current force structure by 9,000 Marines. The Committee also provides $20,000,000 above the budget request for additional recruitment and retention programs for the Reserve and National Guard forces to access and retain specialty skills.

TROOPS SUPPORTED

The Committee recommended funding level will support the following mobilization and deployment assumptions for troops deployed in support of Operation Enduring Freedom (OEF) and Operation Iraqi Freedom (OIF) through fiscal year 2007:

--------------------------------------------------------

Army Navy Marine Corps Air Force Total Force

--------------------------------------------------------

OEF 15,500 28,000 500 26,000 70,000

OIF 141,000 9,000 26,000 1,400 177,400

Total 156,500 37,000 26,500 27,400 247,400

--------------------------------------------------------

The adjustments to the budget request for Military Personnel are shown below:

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MILITARY PERSONNEL, ARMY

Fiscal year 2007 enacted supplemental appropriations 1

$4,346,710,000

Fiscal year 2007 supplemental request

8,305,899,000

Committee recommendation

8,878,899,000

Change from request

+573,000,000

1 Appropriations provided in Title IX of Public Law 109-289, the Department of Defense Appropriations Act for fiscal year 2007.

COMMITTEE RECOMMENDATION

The Committee recommends an appropriation of $8,878,899,000 for Military Personnel, Army. The recommendation is an increase of $573,000,000 above the budget request.

The recommendation provides the following for Military Personnel, Army:

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RECOMMENDED ADJUSTMENTS

The recommendation includes the following adjustments:

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MILITARY PERSONNEL, NAVY

Fiscal year 2007 enacted supplemental appropriations 1

$143,296,000

Fiscal year 2007 supplemental request

692,127,000

Committee recommendation

1,100,410,000

Change from request

+408,283,000

1 Appropriations provided in Title IX of Public Law 109-289, the Department of Defense Appropriations Act for fiscal year 2007.

COMMITTEE RECOMMENDATION

The Committee recommends an appropriation of $1,100,410,000 for Military Personnel, Navy. The recommendation is an increase of $408,283,000 above the budget request.

The recommendation provides the following for Military Personnel, Navy:

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RECOMMENDED ADJUSTMENTS

The recommendation includes the following adjustments:

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MILITARY PERSONNEL, MARINE CORPS

Fiscal year 2007 enacted supplemental appropriations 1

$145,576,000

Fiscal year 2007 supplemental request

1,386,871,000

Committee recommendation

1,495,828,000

Change from request

+108,957,000

1 Appropriations provided in Title IX of Public Law 109-289, the Department of Defense Appropriations Act for fiscal year 2007.

COMMITTEE RECOMMENDATION

The Committee recommends an appropriation of $1,495,828,000 for Military Personnel, Marine Corps. The recommendation is an increase of $108,957,000 above the budget request.

The recommendation provides the following for Military Personnel, Marine Corps:

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RECOMMENDED ADJUSTMENTS

The recommendation includes the following adjustments:

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MILITARY PERSONNEL, AIR FORCE

Fiscal year 2007 enacted supplemental appropriations 1

$351,788,000

Fiscal year 2007 supplemental request

1,100,687,000

Committee recommendation

1,229,334,000

Change from request

+128,647,000

1 Appropriations provided in Title IX of Public Law 109-289, the Department of Defense Appropriations Act for fiscal year 2007.

COMMITTEE RECOMMENDATION

The Committee recommends an appropriation of $1,229,334,000 for Military Personnel, Air Force. The recommendation is an increase of $128,647,000 above the budget request.

The recommendation provides the following for Military Personnel, Air Force:

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RECOMMENDED ADJUSTMENTS

The recommendation includes the following adjustments:

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The recommendation includes the following adjustments:

RESERVE PERSONNEL, ARMY

Fiscal year 2007 enacted supplemental appropriations 1

$87,756,000

Fiscal year 2007 supplemental request

147,244,000

Committee recommendation

173,244,000

Change from request

+26,000,000

1 Appropriations provided in Title IX of Public Law 109-289, the Department of Defense Appropriations Act for fiscal year 2007.

COMMITTEE RECOMMENDATION

The Committee recommends an appropriation of $173,244,000 for Reserve Personnel, Army. The recommendation is an increase of $26,000,000 above the budget request.

The recommendation provides the following for Reserve Personnel, Army:

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RECOMMENDED ADJUSTMENTS

The recommendation includes the following adjustments:

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RESERVE PERSONNEL, NAVY

Fiscal year 2007 enacted supplemental appropriations 1

Fiscal year 2007 supplemental request

$72,800,000

Committee recommendation

82,800,000

Change from request

+10,000,000

1 Appropriations provided in Title IX of Public Law 109-289, the Department of Defense Appropriations Act for fiscal year 2007.

COMMITTEE RECOMMENDATION

The Committee recommends an appropriation of $82,800,000 for Reserve Personnel, Navy. The recommendation is an increase of $10,000,000 above the budget request.

The recommendation provides the following for Reserve Personnel, Navy:

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RECOMMENDED ADJUSTMENTS

The recommendation includes the following adjustments:

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RESERVE PERSONNEL, MARINE CORPS

Fiscal year 2007 enacted supplemental appropriations 1

$15,420,000

Fiscal year 2007 supplemental request

--

Committee recommendation

15,000,000

Change from request

+15,000,000

1 Appropriations provided in Title IX of Public Law 109-289, the Department of Defense Appropriations Act for fiscal year 2007.

COMMITTEE RECOMMENDATION

The Committee recommends an appropriation of $15,000,000 for Reserve Personnel, Marine Corps. The recommendation is an increase of $15,000,000 above the budget request.

The recommendation provides the following for Reserve Personnel, Marine Corps:

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RECOMMENDED ADJUSTMENTS

The recommendation includes the following adjustments:

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RESERVE PERSONNEL, AIR FORCE

Fiscal year 2007 enacted supplemental appropriations 1

--

Fiscal year 2007 supplemental request

$3,000,000

Committee recommendation

14,100,000

Change from request

+11,100,000

1 Appropriations provided in Title IX of Public Law 109-289, the Department of Defense Appropriations Act for fiscal year 2007.

COMMITTEE RECOMMENDATION

The Committee recommends an appropriation of $14,100,000 for Reserve Personnel, Air Force. The recommendation is an increase of $11,100,000 above the budget request.

The recommendation provides the following for Reserve Personnel, Air Force:

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RECOMMENDED ADJUSTMENTS

The recommendation includes the following adjustments:

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NATIONAL GUARD PERSONNEL, ARMY

Fiscal year 2007 enacted supplemental appropriations 1

$295,959,000

Fiscal year 2007 supplemental request

436,025,000

Committee recommendation

552,725,000

Change from request

+116,700,000

1 Appropriations provided in Title IX of Public Law 109-289, the Department of Defense Appropriations Act for fiscal year 2007.

COMMITTEE RECOMMENDATION

The Committee recommends an appropriation of $552,725,000 for National Guard Personnel, Army. The recommendation is an increase of $116,700,000 above the budget request.

The recommendation provides the following for National Guard Personnel, Army:

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RECOMMENDED ADJUSTMENTS

The recommendation includes the following adjustments:

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NATIONAL GUARD PERSONNEL, AIR FORCE

Fiscal year 2007 enacted supplemental appropriations 1

--

Fiscal year 2007 supplemental request

--

Committee recommendation

$24,600,000

Change from request

+24,600,000

1 Appropriations provided in Title IX of Public Law 109-289, the Department of Defense Appropriations Act for fiscal year 2007.

COMMITTEE RECOMMENDATION

The Committee recommends an appropriation of $24,600,000 for National Guard Personnel, Air Force. The recommendation is an increase of $24,600,000 above the budget request.

The recommendation provides the following for National Guard Personnel, Air Force:

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RECOMMENDED ADJUSTMENTS

The recommendation includes the following adjustments:

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OPERATION AND MAINTENANCE

The Committee recommends $52,499,979,000 for operation and maintenance accounts, an increase of $2,183,886,000 above the President's request. Funds are provided for personnel support requirements including travel, subsistence, individual and organizational equipment, repair, reserve component activation costs, and incremental civilian personnel costs. Increases for operating support costs include funds for military operations including spare parts and consumable supplies, transportation, pre-deployment training and training in theater, forward base operating costs, communications, vehicle maintenance, and contracts for linguists, logistics and infrastructure support. In addition, funds are provided within the operation and maintenance accounts to address fuel price increases.

The Committee recommends reductions for certain programs in cases in which it was determined that funding requested could not be obligated within the current fiscal year or funding requested was excess to the Department's needs.

The following table provides details of the recommendations for the operation and maintenance accounts:

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OPERATION AND MAINTENANCE, ARMY

Fiscal year 2007 enacted supplemental appropriations 1

$28,034,102,000

Fiscal year 2007 supplemental request

19,803,572,000

Committee recommendation

20,897,672,000

Change from request

+1,094,100,000

1 Appropriations provided in Title IX of Public Law 109-289, the Department of Defense Appropriations Act for fiscal year 2007.

This appropriation finances operation and maintenance activities for the Active Army in support of Operation Iraqi Freedom and Operation Enduring Freedom. These activities encompass ground combat operations, flying hours, military intelligence activities, logistics support, fuel purchases, base operations, depot maintenance, and over-ocean transportation related to the wars in Iraq and Afghanistan. Also included is the Commander's Emergency Response Program.

COMMITTEE RECOMMENDATION

The Committee recommends an appropriation of $20,897,672,000 for Operation and Maintenance, Army. The recommendation is an increase of $1,094,100,000 above the budget request, and, when combined with previously enacted supplemental appropriations for fiscal year 2007, provides for a total fiscal year 2007 supplemental appropriation of $48,931,774,000.

The recommendation provides the following for Operation and Maintenance, Army:

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RECOMMENDED ADJUSTMENTS

The recommendation includes the following adjustments:

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BUDGET SUBMISSION ERRORS

The official budget submission for Operation and Maintenance, Army was understated by $356,000,000. In addition, the budget submission for the Commander's Emergency Response Program was overstated by $50,400,000. The Committee's recommendations correct these errors.

`BOOTS ON THE GROUND' POLICY

On January 19, 2007, the Secretary of Defense issued a memorandum titled `Utilization of the Total Force' which establishes a policy to limit `boots on the ground' for reserve component personnel. This policy change is likely to result in more extensive training prior to mobilization and increase throughput at Army ranges. The Committee recommends an additional $88,500,000 to reflect the change in policy.

COMMANDER'S EMERGENCY RESPONSE PROGRAM

Within the funds provided for Operation and Maintenance, Army, the Committee recommends $456,000,000 for the Commander's Emergency Response Program (CERP). The recommendation is the same level as requested in the budget estimate. The funding provided will continue to enable military commanders in Iraq and Afghanistan to respond to urgent humanitarian relief and reconstruction needs within their areas of responsibility. Consistent with the budget estimate, $350,000,000 shall be available for CERP activities in Iraq and $106,000,000 for activities in Afghanistan.

The Committee recommendations include a general provision that requires the Department of Defense to submit, not later than 15 days after each quarter of the fiscal year, a report regarding the source of funds and the allocation and use of funds during the quarter.

The Committee notes that CERP is intended for small-scale and urgent projects. The Department's financial guidance requires notification for projects in excess of $500,000 and such notification includes a description of the project, an estimated length of completion, and a justification of how the project supports the purpose of the CERP. The Committee notes, however, that the Department's guidance does not limit or cap the size of a project that can be supported by CERP funds. Quarterly reporting data shows an increasing number of larger-scale projects. These larger-scaled projects may be more appropriately funded under the traditional foreign assistance programs of the Department of State and the U.S. Agency for International Development. As such, the Department should consider revising its policy guidance to include limitations on project size. Moreover, the Committee notes that CERP expenditures are planned for well into the future. Accordingly, the Department is strongly encouraged to coordinate with the Department of State and the U.S. Agency for International Development to avoid duplication of effort and to contribute to a coherent foreign assistance program in Iraq and Afghanistan.

OPERATION AND MAINTENANCE, NAVY

Fiscal year 2007 enacted supplemental appropriations

$1,615,288,000

Fiscal year 2007 supplemental request

5,945,397,000

Committee recommendation

5,115,397,000

Change from request

-830,000,000

1 Appropriations provided in Title IX of Public Law 109-289, the Department of Defense Appropriations Act for fiscal year 2007.

This appropriation finances operation and maintenance activities for the Navy in support of Operation Iraqi Freedom and Operation Enduring Freedom. These activities encompass combat operations, flying hours, military intelligence activities, logistics support, fuel purchases, base operations, depot maintenance, and over-ocean transportation related to the wars in Iraq and Afghanistan.

COMMITTEE RECOMMENDATION

The Committee recommends an appropriation of $5,115,397,000 for Operation and Maintenance, Navy. The recommendation is a decrease of $830,000,000 below the budget request, and, when combined with previously enacted supplemental appropriations for fiscal year 2007, provides for a total fiscal year 2007 supplemental appropriation of $6,730,685,000.

The recommendation provides the following for Operation and Maintenance, Navy:

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RECOMMENDED ADJUSTMENTS

The recommendation includes the following adjustments:

Insert graphic folio 81 33466A.034

BUDGET SUBMISSION ERRORS

The official budget submission for Operation and Maintenance, Navy was misstated by $804,000,000. The Committee's recommendation corrects this error. To meet the reductions taken to correct the error, the Committee directs the Navy to apply reductions so as to conform to the subactivity detail contained in the Department of the Navy's Fiscal Year 2008 and 2009 Budget Estimates, Fiscal Year 2007 Emergency Supplemental Request.

PROGRAM REDUCTIONS

The Navy's budget request includes funding for equipment maintenance which cannot be obligated in fiscal year 2007. These costs will not be incurred in fiscal year 2007 as budgeted. The aircraft carrier battle group will be deployed during the second half of the fiscal year. As such, the Committee recommendation reduces the budget request by a total of $306,000,000.

OPERATION AND MAINTENANCE, MARINE CORPS

Fiscal year 2007 enacted supplemental appropriations 1

$2,689,006,000

Fiscal year 2007 supplemental request

1,401,594,000

Committee recommendation

1,503,694,000

Change from request

+102,100,000

1 Appropriations provided in Title IX of Public Law 109-289, the Department of Defense Appropriations Act for fiscal year 2007.

COMMITTEE RECOMMENDATION

The Committee recommends an appropriation of $1,503,694,000 for Operation and Maintenance, Marine Corps. The recommendation is an increase of $102,100,000 above the budget request, and, when combined with previously enacted supplemental appropriations for fiscal year 2007, provides for a total fiscal year 2007 supplemental appropriation of $4,192,700,000.

The recommendation provides the following for Operation and Maintenance, Marine Corps:

Insert graphic folio 84 33466A.035

RECOMMENDED ADJUSTMENTS

The recommendation includes the following adjustments:

Insert graphic folio 86 33466A.036

OPERATION AND MAINTENANCE, AIR FORCE

Fiscal year 2007 enacted supplemental appropriations 1

$2,688,189,000

Fiscal year 2007 supplemental request

7,069,259,000

Committee recommendation

6,909,259,000

Change from request

-160,000,000

1 Appropriations provided in Title IX of Public Law 109-289, the Department of Defense Appropriations Act for fiscal year 2007.

This appropriation finances operation and maintenance activities for the Active Air Force in support of Operation Iraqi Freedom and Operation Enduring Freedom. These activities encompass combat operations, flying hours, military intelligence activities, logistics support, fuel purchases, base operations, depot maintenance, and over-ocean transportation related to the wars in Iraq and Afghanistan. The emergency supplemental appropriation recommended in this bill provides for the incremental costs of Operation Iraqi Freedom and Operation Enduring Freedom.

COMMITTEE RECOMMENDATION

The Committee recommends an appropriation of $6,909,259,000 for Operation and Maintenance, Air Force. The recommendation is a decrease of $160,000,000 below the budget request, and, when combined with previously enacted supplemental appropriations for fiscal year 2007, provides for a total fiscal year 2007 supplemental appropriation of $9,597,448,000.

The recommendation provides the following for Operation and Maintenance, Air Force:

Insert graphic folio 88 33466A.037

Insert graphic folio 89 33466A.038

RECOMMENDED ADJUSTMENTS

The recommendation includes the following adjustments:

Insert graphic folio 91 33466A.039

OPERATION AND MAINTENANCE, DEFENSE-WIDE

Fiscal year 2007 enacted supplemental appropriations 1

$2,774,963,000

Fiscal year 2007 supplemental request

3,378,307,000

Committee recommendation

2,855,993,000

Change from request

-522,314,000

1 Appropriations provided in Title IX of Public Law 109-289, the Department of Defense Appropriations Act for fiscal year 2007.

This appropriation supports critical Department-wide functions, military departments and warfighters. The appropriation includes funding for Special Operations Command, several combat support agencies, four intelligence agencies, and other agencies that provide common information services, contract administration, contract audit, logistics and administrative functions to the military departments. The emergency supplemental appropriation recommended in this bill provides for the incremental costs of Operation Iraqi Freedom, Operation Enduring Freedom and the Global War on Terrorism.

COMMITTEE RECOMMENDATION

The Committee recommends an appropriation of $2,855,993,000 for Operation and Maintenance, Defense-Wide. The recommendation is a decrease of $522,314,000 from the budget request, and, when combined with previously enacted supplemental appropriations for fiscal year 2007, provides for a total fiscal year 2007 supplemental appropriation of $5,630,956,000.

The recommendation provides the following for Operation and Maintenance, Defense-Wide:

Insert graphic folio 93 33466A.040

RECOMMENDED ADJUSTMENTS

The recommendation includes the following adjustments:

Insert graphic folio 6 HR60.041

EXPEDITIONARY VIRTUAL NETWORK (EVNO)

The Committee recommendation does not include funding for the expeditionary virtual network under this heading. Funding for this activity is more appropriately funded within the Iraq Security Forces Fund.

FAMILY ADVOCACY PROGRAMS

The Committee recommends an additional $17,000,000 for the Family Advocacy Programs. From the additional amounts provided, $7,000,000 is to fund initiatives to ensure that Guard and Reserve families receive the same level of pre-deployment and post-deployment support as active duty families. This effort will utilize the Joint Reserve & Guard Family Assistance Center. The Committee also provides $10,000,000 to support the child care needs of Guard and Reserve members in their local communities. In addition, the recommendation provides support services, training and technical assistance to personnel at military installations, and outreach to National Guard and Reservist Service members, their families, and the professionals who support Service members to improve the emotional health and development of infants, toddlers, and children of deployed Service members.

SPECIALIST TILLMAN INVESTIGATION

Army Specialist Patrick Tillman, died April 22, 2004, in eastern Afghanistan. The Army investigations were `informal investigations' conducted under authority in Army Regulation 15-6 by command personnel. Subsequently, in August 2005, in response to a request from the Army Inspector General, the Department of Defense's Inspector General initiated an oversight review of the Army's investigations into the incident that resulted in Tillman's death. The Department of Defense's Inspector General stated the objective of its report is to determine whether the Army properly investigated and reported the incident that resulted in Specialist Tillman's death.

How the Army and the Department of Defense handled this investigation is inexcusable. It has been nearly three years since the beginning of the Army's investigation and the Tillman family still has no resolution on the death of their son. Therefore, the Committee directs the Department of Defense's Inspector General to release a full incident report detailing the circumstance surrounding the death of Specialist Pat Tillman to the Tillman family and the Committee not later than 30 days after enactment of this Act.

EMP COMMISSION

The Commission to Assess the Threat to the United States from Electromagnetic Pulse Attack was reauthorized in the National Defense Authorization Act for Fiscal Year 2006. The reauthorization would allow the commission to evaluate public and private efforts to implement recommendations included in its 2004 report to Congress. The law requires the commission's chairman to certify the specific funds needed for the activities of the commission and for the Secretary of Defense to disburse the funds required, pursuant to that certification. The Committee understands that the Department of Defense has not provided sufficient funds for the commission to carry out its authorized duties. Therefore, the Committee directs the Department to promptly disburse to the coinmission the funds required to complete its duties, as specified in law.

OPERATION AND MAINTENANCE, ARMY RESERVE

Fiscal year 2007 enacted supplemental appropriations 1

$77,600,000

Fiscal year 2007 supplemental request

74,049,000

Committee recommendation

74,049,000

Change from request

--

1 Appropriations provided in Title IX of Public Law 109-289, the Department of Defense Appropriations Act for fiscal year 2007.

The Operation and Maintenance, Army Reserve (OMAR) appropriation funds operational, logistics, administrative, engineering and management support for the Army Reserve. Additionally, the OMAR appropriation supports America's Army in areas including installation management, maintenance of real property, record management, and personnel support to retirees, veterans and their families. Costs incurred in providing the support include civilian pay, information systems, networks, telecommunications, supplies, fuel, equipment and base operations support. Funding is provided in two budget activities. Operating Forces (BA-1) consists of the following budget activity groups: land forces, land forces readiness and land forces readiness support. Administrative and service-wide activities (BA-4) consists of the following sub-activity groups: administration, service-wide communications, personnel and financial administration, and recruiting and advertising. The emergency supplemental appropriation recommended in this bill provides for the incremental costs of Operation Iraqi Freedom, Operation Enduring Freedom and the Global War on Terror.

COMMITTEE RECOMMENDATION

The Committee recommends an appropriation of $74,049,000 for Operation and Maintenance, Army Reserve. The recommendation is the same level as the budget request, and, when combined with previously enacted supplemental appropriations for fiscal year 2007, provides for a total fiscal year 2007 supplemental appropriation of $151,649,000.

The recommendation provides the following for Operation and Maintenance, Army Reserve:

Insert graphic folio 98 33466A.042

OPERATION AND MAINTENANCE, NAVY RESERVE

Fiscal year 2007 enacted supplemental appropriations 1

$9,886,000

Fiscal year 2007 supplemental request

111,066,000

Committee recommendation

111,066,000

Change from request

--

1 Appropriations provided in Title IX of Public Law 109-289, the Department of Defense Appropriations Act for fiscal year 2007.

The Operation and Maintenance, Navy Reserve appropriation provides for the cost of operating Navy Reserve forces and maintaining their assigned equipment at a state of readiness that will permit rapid employment in the event of full or partial mobilization and meet fleet operational support requirements. The Navy Reserve's mission is to support the Navy-Marine Corps team with mission ready units, equipment and individuals throughout the full range of operations from peace to war. The Operation and Maintenance, Navy Reserve appropriation consists of two budget activities: Operating Forces (BA-1), and Administrative and Service-wide Support (BA-4). BA-1 funding provides for the operation and maintenance of Reserve force ships, aircraft and combat support forces. In addition, funding is used to operate and maintain Navy Reserve activities and commands in all 50 states. The emergency supplemental appropriation recommended in this bill provides for the incremental costs of Operation Iraqi Freedom, Operation Enduring Freedom, and the Global War on Terror.

COMMITTEE RECOMMENDATION

The Committee recommends an appropriation of $111,066,000 for Operation and Maintenance, Navy Reserve. The recommendation is the same level as the budget request, and, when combined with previously enacted supplemental appropriations for fiscal year 2007, provides for a total fiscal year 2007 supplemental appropriation of $120,952,000.

The recommendation provides the following for Operation and Maintenance, Navy Reserve:

Insert graphic folio 101 33466A.043

OPERATION AND MAINTENANCE, MARINE CORPS RESERVE

Fiscal year 2007 enacted supplemental appropriations 1

$48,000,000

Fiscal year 2007 supplemental request

13,591,000

Committee recommendation

13,591,000

Change from request

--

1 Appropriations provided in Title IX of Public Law 109-289, the Department of Defense Appropriations Act for fiscal year 2007.

The Operation and Maintenance, Marine Corps Reserve (O&M, MCR) appropriation provides for the day-to-day costs of operating the Marine Corps Reserve force, its functional activities and facilities. The funding also supports the Fourth Marine Division, the Fourth Marine Aircraft Wing, the Fourth Force Service Support Group, and the Marine Corps Reserve Support Command, which together are known as the Marine Corps Force Reserves. The O&M, MCR is reflected in two budget activities: Operating Forces (BA-1) and Administration and Service-wide Activities (BA-4). Funded within the BA-1 are weekend, annual, and individual training for the Reserves; the purchase and replacement of expense type items authorized by unit training allowance and the repair of equipment; and maintenance of major end items of equipment performed by the Marine Corps Logistics bases. The BA-4 activity includes funding for recruiting and advertising, transportation of things, special support, administration and other base support. The emergency supplemental appropriation recommended in this bill provides for the incremental costs of Operation Iraqi Freedom, Operation Enduring Freedom and the Global War on Terror.

COMMITTEE RECOMMENDATION

The Committee recommends an appropriation of $13,591,000 for Operation and Maintenance, Marine Corps Reserve. The recommendation is the same level as the budget request, and, when combined with previously enacted supplemental appropriations for fiscal year 2007, provides for a total fiscal year 2007 supplemental appropriation of $61,591,000.

The recommendation provides the following for Operation and Maintenance, Marine Corps Reserve:

Insert graphic folio 104 33466A.044

OPERATION AND MAINTENANCE, AIR FORCE RESERVE

Fiscal year 2007 enacted supplemental appropriations 1

$65,000,000

Fiscal year 2007 supplemental request

10,160,000

Committee recommendation

10,160,000

Change from request

--

1 Appropriations provided in Title IX of Public Law 109-289, the Department of Defense Appropriations Act for fiscal year 2007.

The appropriation for Operation and Maintenance, Air Force Reserve provides funds to maintain and train units for immediate mobilization, and to provide administrative support which encompasses the Office of the Air Force Reserve (Air Staff), Headquarters Air Force Reserve (Operational Headquarters), the Numbered Air Forces and the Air Reserve Personnel Center. The emergency supplemental appropriation recommended in this bill provides for the incremental costs of Operation Iraqi Freedom, Operation Enduring Freedom and the Global War on Terror.

COMMITTEE RECOMMENDATION

The Committee recommends an appropriation of $10,160,000 for Operation and Maintenance, Air Force Reserve. The recommendation is the same level as the budget request, and, when combined with previously enacted supplemental appropriations for fiscal year 2007, provides for a total fiscal year 2007 supplemental appropriation of $75,160,000.

The recommendation provides the following for Operation and Maintenance, Air Force Reserve:

Insert graphic folio 106 33466A.045

OPERATION AND MAINTENANCE, ARMY NATIONAL GUARD

Fiscal year 2007 enacted supplemental appropriations 1

$424,000,000

Fiscal year 2007 supplemental request

83,569,000

Committee recommendation

133,569,000

Change from request

+50,000,000

1 Appropriations provided in Title IX of Public Law 109-289, the Department of Defense Appropriations Act for fiscal year 2007.

The appropriation for Operation and Maintenance, Army National Guard provides funds to cover the expenses of training, organizing and administering the Army National Guard. The emergency supplemental appropriation recommended in this bill provides for the incremental costs of Operation Iraqi Freedom, Operation Enduring Freedom and the Global War on Terror.

COMMITTEE RECOMMENDATION

The Committee recommends an appropriation of $133,569,000 for Operation and Maintenance, Army National Guard. The recommendation is $50,000,000 above the budget request, and, when combined with previously enacted supplemental appropriations for fiscal year 2007, provides for a total fiscal year 2007 supplemental appropriation of $557,569,000.

The recommendation provides the following for Operation and Maintenance, Army National Guard:

Insert graphic folio 108 33466A.046

RECOMMENDED ADJUSTMENTS

The recommendation includes the following adjustments:

Insert graphic folio 110 33466A.047

OPERATION AND MAINTENANCE, AIR NATIONAL GUARD

Fiscal year 2007 enacted supplemental appropriations 1

--

Fiscal year 2007 supplemental request

$38,429,000

Committee recommendation

38,429,000

Change from request

--

1 Appropriations provided in Title IX of Public Law 109-289, the Department of Defense Appropriations Act for fiscal year 2007.

The appropriation for Operation and Maintenance, Air National Guard provides funds for operational support of the Air National Guard (ANG) along with ANG/Air Force blended wings and ANG/Air Force associate units. The appropriation also finances operation, maintenance and repair of facilities including real property support agreements; state security agreements; facility sustainment; travel costs of all ANG personnel; supplies and equipment. Lastly, it provides funding to support the day-to-day staffing needed to train, equip and support an ANG force at a level of combat readiness that enables it to assimilate immediately into an active force and be capable of conducting independent operations in accordance with unit wartime taskings. The emergency supplemental appropriation recommended in this bill provides for the incremental costs of Operation Iraqi Freedom, Operation Enduring Freedom and the Global War on Terror.

COMMITTEE RECOMMENDATION

The Committee recommends an appropriation of $38,429,000 for Operation and Maintenance, Air National Guard. The recommendation is the same level as the budget request, and, when combined with previously enacted supplemental appropriations for fiscal year 2007, provides for a total fiscal year 2007 supplemental appropriation of $38,429,000.

The recommendation provides the following for Operation and Maintenance, Air National Guard:

Insert graphic folio 113 33466A.048

AFGHANISTAN SECURITY FORCES FUND

Fiscal year 2007 enacted supplemental appropriations 1

$1,500,000,000

Fiscal year 2007 supplemental request

5,906,400,000

Committee recommendation

5,906,400,000

Change from request

--

1 Appropriations provided in Title IX of Public Law 109-289, the Department of Defense Appropriations Act for fiscal year 2007.

The Committee recommends an appropriation of $5,906,400,000 for the Afghanistan Security Forces Fund, the same level as the budget request. This appropriation supports the training, equipment and infrastructure to develop capable security forces within Afghanistan. When combined with previous appropriations for fiscal year 2007, a total of $7,406,400,000 is available in fiscal year 2007 for training and equipping the Afghan security forces.

The recommendation provides the following for Afghanistan Security Forces Fund:

Insert graphic folio 115 33466A.049

IRAQ SECURITY FORCES FUND

Fiscal year 2007 enacted supplemental appropriations 1

$1,700,000,000

Fiscal year 2007 supplemental request

3,842,300,000

Committee recommendation

3,842,300,000

Change from request

--

1 Appropriations provided in Title IX of Public Law 109-289, the Department of Defense Appropriations Act for fiscal year 2007.

Appropriations provided under this heading are to train and equip the Iraqi security forces. These forces can protect Iraqi citizens, maintain national security and territorial integrity by upholding the rule of law, and combat insurgents, terrorists and criminal activities. To date, the Congress has provided in excess of $15,400,000,000 to this effort. Funds to train and equip Iraqi security forces were initially provided as allocations from the Iraq Relief and Reconstruction Fund and then subsequently from direct appropriations. The fiscal year 2007 supplemental request includes an additional appropriation of $3,842,300,000 for the Iraq Security Forces Fund.

The Committee recommendation includes $3,842,300,000 for Iraqi security forces. When combined with previous fiscal year 2007 appropriations, a total of $5,542,300,000 will be available for Iraqi force generation activities in fiscal year 2007. These funds are in addition to funds provided in fiscal year 2006, which remain largely unspent, and approximately $7,300,000,000 approved by the Iraqi government to support its own troop and security forces development. In total, the Committee estimates that almost $15,000,000,000 will be available for expenditure in fiscal year 2007 to support the training and equipping of Iraqi security forces.

Though the number and quality of Iraqi security forces have improved in recent months, critical problems remain in terms of manpower, troop quality, discipline and equipment. The recommended level will address these shortcomings. However, the Committee believes that Iraqi force development cannot succeed in an Iraqi-political environment that is faltering in significant areas, such as political reconciliation; general governance; establishment of a legal system and the rule of law; economic development and the rehabilitation of the oil and energy sector.

Moreover, the Committee is concerned that it lacks critical information necessary to make fully informed judgments regarding budget requests and the effectiveness of previous appropriations provided for the development of Iraqi security forces. To date, the Department of Defense has yet to produce an estimated total cost to train and equip the Iraqi security forces, though such activities have been underway since fiscal year 2004. As a result, the Congress is unable to measure progress of the Department in implementing and completing that plan. In addition, though the Department provides limited information regarding the aggregate number of trained and equipped Iraqi security forces and numbers of units leading operations, it fails to provide readiness assessments of individual Iraqi units. Without that information, Congress is unable to assess independently the progress in the development of Iraqi security forces. Accordingly, the Committee has recommended a general provision that requires before the obligation of more than 50 percent of the funds made available under this heading:

(1) the Department of Defense must provide, in classified form, to the congressional defense committees the individual transition readiness assessment (TRAs) by unit of the Iraqi security forces.

(2) the Office of Management and Budget must provide a comprehensive report that includes, but is not limited to: an estimated total cost to train and equip the Iraqi security forces, disaggregated by major program area and sub-elements by force; the use of all funds on a project-by-project basis for which funds are appropriated in this Act, for which funds were appropriated in previous Acts, and for which funds were made available by transfer or reprogrammings or allocation in previous Acts; and a plan which includes benchmarks and milestones to transition such assistance to traditional foreign assistance administered by the Department of State. This report is to be updated periodically.

The Committee recommendation deletes funding of $155,500,000 requested to provide assistance to the Government of Iraq to disarm, demobilize and reintegrate militias and illegal armed groups. The Department of Defense lacks such authority and is more appropriately a Department of State activity.

In a briefing by the GAO and the Special Inspector for Iraq Reconstruction before the Committee, the Comptroller General informed the Committee that the Department of Defense and Multi-National Force-Iraq may not be able to account for Iraqi security forces' receipt of hundreds of thousands of weapons, thousands of vehicles and millions of pieces of gear. It is not clear what accountability measures, if any, the Department of Defense has chosen to apply to the non-traditional train-and-equip program for Iraq. The Committee therefore directs the Department to report to the Committee within 90 days of enactment of this Act the accountability requirements DoD has applied to the train-and-equip program for Iraq and the plans underway to formulate property accountability rules and regulations that distinguish between peace and war.

The recommendation provides the following for the Iraq Security Forces Fund:

Insert graphic folio 120 here 33466A.050

IRAQ FREEDOM FUND

Fiscal year 2007 enacted supplemental appropriations 1

$50,000,000

Fiscal year 2007 supplemental request

205,600,000

Committee recommendation

155,600,000

Change from request

-50,000,000

1 Appropriations provided in Title IX of Public Law 109-289, the Department of Defense Appropriations Act for fiscal year 2007.

The Committee recommends an appropriation of $155,600,000 for the Iraq Freedom Fund. Of the funds provided, $105,000,000 is to be available for continuous escort and provision of an honor guard for military members who die in a combat zone. In addition, $50,000,000 is to be available for rapid acquisition cell activities, and when combined with enacted emergency appropriations for fiscal year 2007, provides for the same level as in fiscal year 2006.

The recommendation provides the following for the Iraq Freedom Fund:

Insert graphic folio 122 here 33466A.051

JOINT IMPROVISED EXPLOSIVE DEVICE DEFEAT FUND

Fiscal year 2007 enacted supplemental appropriations 1

$1,920,000,000

Fiscal year 2007 supplemental request

2,432,800,000

Committee recommendation

2,432,800,000

Change from request

--

1 Appropriations provided in Title IX of Public Law 109-289, the Department of Defense Appropriations Act for fiscal year 2007.

The Committee recommends an appropriation of $2,432,800,000, the same level as the budget request, for the Joint Improvised Explosive Device Defeat Organization.

The Committee continues to provide substantial resources to support the Joint Improvised Explosive Device Defeat Organization (JIEDDO). The Committee recognizes that the organization is performing a critically important mission, but believes that the lack of fiscal discipline within the organization is detrimental to its overall success. The Department of Defense Comptroller must provide improved oversight to prevent duplication of projects between individual services and JIEDDO. As such, the Committee recommends the consolidation of funding for certain military service research and development programs which appear to duplicate JIEDDO's activities.

The Committee provides the full amount of funding requested for Improvised Explosive Device jammers. All military wheeled vehicles used in Iraq and Afghanistan outside of secure military operating bases are required to have a protective jammer device, as mandated by the National Defense Authorization Act for Fiscal Year 2007. Within the `Defeat the Device' program line, the Committee directs the JIEDDO to fund all additional Joint Counter Radio-Controlled Electronic Warfare (CREW) requirements as needed for the escalation of troops in Operation Iraqi Freedom, and to consider this funding as a Congressional item of interest.

The Committee further directs JIEDDO to use standard reprogramming procedures when transferring a cumulative amount of $20,000,000 or more between sub-activities.

The recommendation provides the following for JIEDDO:

Insert graphic folio 125 here 33466A.052

STRATEGIC RESERVE READINESS FUND

Fiscal year 2007 enacted supplemental appropriations 1

--

Fiscal year 2007 supplemental request

--

Committee recommendation

$2,500,000,000

Change from request

+2,500,000,000

1 Appropriations provided in Title IX of Public Law 109-289, the Department of Defense Appropriations Act for fiscal year 2007.

The Committee recommendation includes $2,500,000,000 to establish a Strategic Reserve Readiness Fund. This appropriation shall support training, operations, repair of equipment, purchase of equipment, and other expenses to improve the readiness of non-deployed United States military forces. Funds appropriated under this heading shall be available for transfer to other appropriations for military personnel, operations and maintenance, procurement, and defense working capital funds.

READINESS

Overall, reported readiness levels for deployed forces are high but are not sufficient for forces at home bases. Training readiness is significantly diminished for units at home station due to personnel turnover, equipment shortages and the short turnaround between combat tours. The Strategic Reserve Readiness Fund (SRRF) provides funds intended to finance additional training, supplies and equipment, which, because of budget lead times, were not included in the normal budget development process. The SRRF is to finance improvements in readiness posture of home-station units that are `next-to-deploy'.

PROCUREMENT

The Committee recommends an appropriation of $24,813,673,000 for Procurement, $86,306,000 below the budget request for fiscal year 2007.

The adjustments to the budget request for procurement are shown below:

Insert graphic folio 129 here 33466A.053

AIRCRAFT PROCUREMENT, ARMY

Fiscal year 2007 enacted supplemental appropriations 1

$1,461,300,000

Fiscal year 2007 supplemental request

627,750,000

Committee recommendation

461,850,000

Change from request

-165,900,000

1 Appropriations provided in Title IX of Public Law 109-289, the Department of Defense Appropriations Act for fiscal year 2007.

COMMITTEE RECOMMENDATION

The Committee recommends an appropriation of $461,850,000 for Aircraft Procurement, Army. The recommendation is a decrease of $165,900,000 below the budget request.

The recommendation provides the following for Aircraft Procurement, Army:

Insert graphic folio 131 here 33466A.054

Insert graphic folio 132 here 33466A.055

UH-60M BLACKHAWK (MYP)

The request for supplemental appropriations proposes $106,300,000 in addition to $1,080,700,000 that is included in the Department of Defense Appropriations Act, 2007 for UH-60M Blackhawk multi-year procurement. The amount requested would add seven aircraft to the procurement total for fiscal year 2007. The seven aircraft were requested for force readiness upgrades, were not intended to replace battle losses and would not be delivered until January to June 2009. Since the submission of the supplemental budget request, the Army has experienced two aircraft battle losses. The Committee recommendation provides funding for two battle loss replacement aircraft. The Committee recommends the Army request funding for procurement of aircraft for modernization as part of the normal budget process.

CH-47 CARGO HELICOPTER MODS

The fiscal year 2007 Department of Defense supplemental budget request proposes $120,000,000 for procurement of four new build aircraft. The aircraft were not requested for battle loss replacement but would serve to improve Army aviation overall force modernization. Since the submission of the supplemental request, Army Special Operations Command has lost one additional CH-47 during combat operations in Afghanistan. The Committee recommendation provides funding for one additional new build CH-47 for Army Special Operations Command to replace the recent aircraft lost in Afghanistan, and defers funding of three aircraft to the normal budget process.

MISSILE PROCUREMENT, ARMY

Fiscal year 2007 enacted supplemental appropriations 1

--

Fiscal year 2007 supplemental request

$160,173,000

Committee Recommendation

160,173,000

Change from request

--

1 Appropriations provided in Title IX of Public Law 109-289, the Department of Defense Appropriations Act for fiscal year 2007.

COMMITTEE RECOMMENDATION

The Committee recommends an appropriation of $160,173,000 for Missile Procurement, Army. The recommendation is the same as the budget request.

The recommendation provides the following for Missile Procurement, Army:

Insert graphic folio 136 33466A.056

PROCUREMENT OF WEAPONS AND TRACKED COMBAT VEHICLES, ARMY

Fiscal year 2007 enacted supplemental appropriations 1

$3,393,230,000

Fiscal year 2007 supplemental request

3,474,389,000

Committee Recommendation

3,474,389,000

Change from request

--

1 Appropriations provided in Title IX of Public Law 109-289, the Department of Defense Appropriations Act for fiscal year 2007.

COMMITTEE RECOMMENDATION

The Committee recommends an appropriation of $3,474,389,000 for Procurement of Weapons and Tracked Combat Vehicles, Army. The recommendation is the same as the budget request.

The recommendation provides the following for Procurement of Weapons and Tracked Combat Vehicles, Army:

Insert graphic folio 138 33466A.057

Insert graphic folio 139 33466A.058

PROCUREMENT OF AMMUNITION, ARMY

Fiscal year 2007 enacted supplemental appropriations 1

$237,750,000

Fiscal year 2007 supplemental request

681,500,000

Committee Recommendation

681,500,000

Change from request

--

1 Appropriations provided in Title IX of Public Law 109-289, the Department of Defense Appropriations Act for fiscal year 2007.

COMMITTEE RECOMMENDATION

The Committee recommends an appropriation of $681,500,000 for Procurement of Ammunition, Army. The recommendation is the same as the budget request.

The recommendation provides the following for Procurement of Ammunition, Army:

Insert graphic folio 141 33466A.059

OTHER PROCUREMENT, ARMY

Fiscal year 2007 enacted supplemental appropriations 1

$5,003,995,000

Fiscal year 2007 supplemental request

9,908,649,000

Committee Recommendation

10,197,399,000

Change from request

+288,750,000

1 Appropriations provided in Title IX of Public Law 109-289, the Department of Defense Appropriations Act for fiscal year 2007.

COMMITTEE RECOMMENDATION

The Committee recommends an appropriation of $10,197,399,000 for Other Procurement, Army. The recommendation is an increase of $288,750,000 above the budget request.

The recommendation provides the following for Other Procurement, Army:

Insert graphic folio 143 33466A.060

Insert graphic folio 144 33466A.061

Insert graphic folio 145 33466A.062

Insert graphic folio 146 33466A.063

Insert graphic folio 147 33466A.064

SINGLE CHANNEL GROUND AND AIRBORNE RADIO SYSTEM (SINCGARS) FAMILY

The Department of Defense supplemental budget request for fiscal year 2007 proposes $532,544,000 for SINCGARS radios and associated hardware and test sets. The Department of the Army has repeatedly expressed a critical need for SINCGARS technology to support ongoing operations. The Committee, however, notes that the requested supplemental funding would result in a 17 month period of production which would not complete production until May of 2010. The Committee strongly supports the acquisition of communications equipment necessary for the conduct of military operations in the war zones, and for force readiness in general. But, the Committee is concerned that the Army has not leveraged available and qualified industrial capacity to deliver funded quantities of SINCGARS radios to the combat, combat support and combat service support units. The Committee strongly encourages the Army to act more aggressively to obligate funds provided by Congress to secure the necessary industrial capacity to produce the needed SINCGARS radios and equip the units of the Army in a more timely manner. The Committee recommends $532,544,000 for SINCGARS radios, the full amount requested. However, $250,000,000 of that amount may not be obligated by the Army until 15 days after the Secretary of the Army provides a report to the congressional defense committees which explains the Army's strategy to leverage available industrial capacity in order to produce the needed radios at a significantly faster rate.

INFORMATION SYSTEMS

The Department of Defense supplemental budget request, 2007 includes $13,200,000 for the purchase and installation costs of information technology related to military construction projects. Of this amount, $1,000,000 was requested for the purchase of Courtroom 21 equipment to support the Military Commissions. The Committee recommends the Department seek funding for information technology related to military construction projects as part of the regular appropriations process. The Committee recommends $1,000,000 for Courtroom 21 equipment.

WARLOCK

The Committee fully supports the counter improvised explosive device effort. Funding for programs to develop and field counter improvised explosive devices is provided in this Act in the Joint Improvised Explosive Device Defeat Fund.

TC AIMS II

The Department of Defense request for supplemental appropriations for fiscal year 2007 proposes $32,403,000 to enable fielding of TC AIMS II to deploying units; for early life cycle replacement at certain bases in the United States and Korea, Europe, and Japan; and to accelerate the fielding schedule to certain other bases in the United States. The Committee supports $12,403,000 in this request for supplemental funding to field or upgrade TC AIMS II for units deploying to Afghanistan and Iraq. The Committee recommends that the remaining $20,000,000 for TC AIMS II life cycle replacement and fielding cost be covered in regular fiscal year budget requests.

STAMIS TACTICAL COMPUTERS (STACOMP)

The Department of Defense request for supplemental appropriations for fiscal year 2007 proposes $176,036,000 for Standard Army Management Information System (STAMIS) Tactical Computers (STACOMP). The STAMIS Tactical Computers program manages procurement and replacement of 135,000 commercial computers for logistics requirements. Fiscal year reset requirements were addressed in Title IX of the Department of Defense Appropriations Act, 2007. The Committee recommendation provides $94,036,000 to support this program for deploying units. The Committee recommends that $82,000,000 for routine equipment wear out and upgrade be addressed in the regular fiscal year budget request.

CSS COMMUNICATIONS

The Department of Defense request for supplemental appropriations for fiscal year 2007 proposes $74,423,000 for Combat Service Support (CSS) Communications. This amount would provide for a general upgrade in Combat Service Support communications including a satellite communications wave form change and 346 remote satellite communications terminals. The Committee recommendation fully supports $37,423,000 for upgrades needed for the support of deployed units. The Committee recommends that $37,000,000 for routine fielding of modernization initiatives and upgrades should be funded through the regular fiscal year appropriations process.

MEDICAL EQUIPMENT MODERNIZATION AND REPLACEMENT

The Committee recommends an additional $4,000,000 above the budget request for medical equipment for combat support hospitals and forward surgical units located in Iraq and Afghanistan.

TRUCK, TRACTOR, LINE HAUL

The Committee understands the critical role that line haul trucks fill in Army logistics. The Committee recommendation provides $5,448,000 for line haul tractors, the full amount included in the supplemental request. The Defense Appropriations Act, 2007 provided $39,692,000 in the base appropriation, and an additional $138,200,000 in Title IX for line haul tractors. The Committee encourages the Army to promptly allocate all funds that have been appropriated for line haul tractors, and take other management actions as necessary to ensure that necessary funds are available for uninterrupted production of line haul tractors for Army logistic units. Additionally, the Committee encourages the Army to include sufficient funding in budget requests to support the production of line haul tractors at rates that achieve economic efficiencies.

AIRCRAFT PROCUREMENT, NAVY

Fiscal year 2007 enacted supplemental appropriations 1

$486,881,000

Fiscal year 2007 supplemental request

1,105,713,000

Committee recommendation

995,797,000

Change from request

-109,916,000

1 Appropriations provided in Title IX of Public Law 109-289, the Department of Defense Appropriations Act for fiscal year 2007.

COMMITTEE RECOMMENDATION

The Committee recommends an appropriation of $995,797,000 for Aircraft Procurement, Navy. The recommendation is a decrease of $109,916,000 below the budget request.

The recommendation provides the following for Aircraft Procurement, Navy:

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EA-18G

The request for supplemental appropriations proposes $450,000,000 for the procurement of six EA-18G aircraft to replace five EA-6B aircraft that have been stressed and one EA-6B aircraft that has been lost in theater. The Committee recommendation supports funding for one EA-18G aircraft as a functional replacement for the EA-6B that has been lost in theater.

F/A-18E/F (FIGHTER) HORNET (MYP)

The Committee understands that there have been three F/A-18 aircraft lost in theater. The Committee recommendation adds $192,000,000 to the supplemental appropriation request for the procurement of three F/A-18E/F aircraft as functional replacements for the aircraft lost in theater.

UH-1Y/AH-1Z

The request for supplemental appropriations proposes $50,000,000 to start a `new build' program for the AH-1Z attack helicopter variant. While the effort to initiate a new build program that would end the remanufacture process is to be applauded, the Committee believes that this significant change in program acquisition strategy should be addressed as part of the normal budget process. Therefore, the Committee recommendation proposes no funding for this effort.

AIRCRAFT SURVIVABILITY EQUIPMENT

The Committee proposes an additional $198,000,000 above the supplemental request in Aircraft Procurement, Navy for aircraft survivability equipment. These additional requirements have been identified by the Marine Corps to address urgent needs in theater and are a response to real world events. Specifically, the funding provides for 70 Directional Infrared Countermeasures (DIRCM) kits for the CH-53E aircraft and for Infrared Engine Suppression, Wire Strike and Countermeasure systems for the CH-46E aircraft. The Committee also recommends $13,000,000 above the request for the required research and development work to allow for the full integration of the systems onto the various platforms.

WEAPONS PROCUREMENT, NAVY

Fiscal year 2007 enacted supplemental appropriations 1

$109,400,000

Fiscal year 2007 supplemental request

171,813,000

Committee recommendation

171,813,000

Change from request

--

1 Appropriations provided in Title IX of Public Law 109-289, the Department of Defense Appropriations Act for fiscal year 2007.

COMMITTEE RECOMMENDATION

The Committee recommends an appropriation of $171,813,000 for Weapons Procurement, Navy. The recommendation is the same as the budget request.

The recommendation provides the following for Weapons Procurement, Navy:

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PROCUREMENT OF AMMUNITION, NAVY AND MARINE CORPS

Fiscal year 2007 enacted supplemental appropriations 1

$127,880,000

Fiscal year 2007 supplemental request

159,833,000

Committee recommendation

159,833,000

Change from request

--

1 Appropriations provided in Title IX of Public Law 109-289, the Department of Defense Appropriations Act for fiscal year 2007.

COMMITTEE RECOMMENDATION

The Committee recommends an appropriation of $159,833,000 for Procurement of Ammunition, Navy and Marine Corps. The recommendation is the same as the budget request.

The recommendation provides the following for Procurement of Ammunition, Navy and Marine Corps:

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OTHER PROCUREMENT, NAVY

Fiscal year 2007 enacted supplemental appropriations 1

$319,965,000

Fiscal year 2007 supplemental request

846,874,000

Committee recommendation

937,407,000

Change from request

+90,533,000

1 Appropriations provided in Title IX of Public Law 109-289, the Department of Defense Appropriations Act for fiscal year 2007.

COMMITTEE RECOMMENDATION

The Committee recommends an appropriation of $937,407,000 for Other Procurement, Navy. The recommendation is an increase of $90,533,000 above the budget request.

The recommendation provides the following for Other Procurement, Navy:

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CONSTRUCTION AND MAINTENANCE EQUIPMENT

The request for supplemental appropriations proposes $173,861,000 for the procurement of construction and maintenance equipment to partially reconstitute equipment for the Navy's Construction Battalions. The Committee understands the Seabees have experienced some of the highest tempo of operations in the Navy during recent combat operations. To accelerate Seabee equipment reconstitution, the Committee recommendation of $225,261,000 provides an additional $51,400,000 for the procurement of such equipment.

PROCUREMENT, MARINE CORPS

Fiscal year 2007 enacted supplemental appropriations 1

$4,898,269,000

Fiscal year 2007 supplemental request

1,805,715,000

Committee recommendation

1,885,383,000

Change from request

+79,668,000

1 Appropriations provided in Title IX of Public Law 109-289, the Department of Defense Appropriations Act for fiscal year 2007.

COMMITTEE RECOMMENDATION

The Committee recommends an appropriation of $1,885,383,000 for Procurement, Marine Corps. The recommendation is an increase of $79,668,000 above the budget request.

The recommendation provides the following for Procurement, Marine Corps:

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GROUND-BASED OPERATIONAL SURVEILLANCE SYSTEM (G-BOSS)

The fiscal year 2007 supplemental request includes $143,332,000 for the Ground-based Operational Surveillance System (G-BOSS). G-BOSS is a capability that provides persistent tracking of objects of interests to prevent or mitigate hostile actions, specifically the threat of Improvised Explosive Devices (IEDs). The Committee fully supports all efforts to counter IEDs and provides funding for this and other counter IED activities in the Joint Improvised Explosive Device Defeat Fund.

AIRCRAFT PROCUREMENT, AIR FORCE

Fiscal year 2007 enacted supplemental appropriations 1

$2,291,300,000

Fiscal year 2007 supplemental request

2,649,336,000

Committee recommendation

2,474,916,000

Change from request

-174,420,000

1 Appropriations provided in Title IX of Public Law 109-289, the Department of Defense Appropriations Act for fiscal year 2007.

COMMITTEE RECOMMENDATION

The Committee recommends an appropriation of $2,474,916,000 for Aircraft Procurement, Air Force. The recommendation is a decrease of $174,420,000 below the budget request.

The recommendation provides the following for Aircraft Procurement, Air Force:

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JOINT STRIKE FIGHTER

The supplemental request included $389,000,000 for procurement of two F-35A Lightning II aircraft. The Committee has denied this funding request. The Committee continues to be concerned about the development and production schedule of the F-35 program. Since these aircraft will not be delivered until mid 2010 at best, and in any case will be used as training aircraft and not directly for battle loss replacements, these funds can be better allocated for more urgent requirements which will bring capability to the fight much quicker.

PREDATOR AND REAPER UNMANNED AERIAL VEHICLES

The supplemental request includes $398,700,000 for procurement of Predator and Reaper Unmanned Aerial Vehicles (UAVs), and associated ground and support equipment. Combatant Commanders in theater have indicated that the appetite for full motion video at both the unit and command levels is limitless. The ability to see the enemy `around the corner or over the hill' is saving lives every day in the war. Both the Predator and the Reaper support troops in contact, special operations missions, and help to greatly reduce the kill-chain in locating and prosecuting high value targets. To provide our forces with this enhanced capability, the Committee provides an additional $89,200,000 for procurement of four additional Predators and 4 additional Reapers. The funds provided are sufficient to cover sensors, associated ground control systems, communications and support equipment.

JOINT HELMET MOUNTED CUEING SYSTEM

The supplemental request includes $119,962,000 to procure and install the Joint Helmet Mounted Cueing System (JHMCS) into 224 F-15E aircraft. The Committee is extremely supportive of adding this capability on the F-15E aircraft. JHMCS improves an aircrew's ability to rapidly employ sensors and weapons against off-boresight ground targets, minimizes F-15E aircrew exposure to ground threats, and enhances situational awareness. The Committee notes that as requested in the supplemental, procurement and installation of this capability would begin at the end of fiscal year 2008 and span until 2012. Funding for such a long procurement is inappropriate in an emergency supplemental. Accordingly, the Committee only provides sufficient funds for procuring units to be delivered and installed through fiscal year 2009.

APG-63(V)3 ACTIVE ELECTRONICALLY SCANNED ARRAY RADARS FOR F-15C

The supplemental request included $72,000,000 for the procurement of eight APG-63(V)3 radar systems for active duty F-15C/D aircraft. The Committee supported improving the radar capability of these aircraft. The Committee provided an additional $124,200,000 in prior appropriations acts to install these radars in Air National Guard aircraft, and encouraged the Air Force to establish a radar upgrade program for the active forces as part of its annual budget request. Unfortunately, because the Air Force failed to do so in prior years, the funds requested in this supplemental would not deliver the first radar until 2010. Funding for such a long procurement is inappropriate in an emergency supplemental. Accordingly, the Committee believes this request is best considered during the normal budget process and recommends disapproval.

LARGE AIRCRAFT COUNTERMEASURES

The supplemental request includes $287,600,000 for countermeasures and defensive systems for the C-5, C-17, and C-130 transport aircraft. Recent events have highlighted the growing threat in theater to our slower moving mobility aircraft and caused concern that insurgents are finding new ways to bring down military aircraft. Infrared shoulder launched surface-to-air missiles are currently in the hands of many terrorist organizations with stated hostile intent against the United States. The Large Aircraft Infrared Countermeasures (LAIRCM) system provides a significantly improved defensive capability for the Air Force's large aircraft to counter this threat. Accordingly, the Committee provides an additional $222,000,000 for procurement and installation of LAIRCM systems on the C-5, C-17, and C-130 aircraft.

MISSILE PROCUREMENT, AIR FORCE

Fiscal year 2007 enacted supplemental appropriations 1

$32,650,000

Fiscal year 2007 supplemental request

140,300,000

Committee recommendation

140,300,000

Change from request

--

1 Appropriations provided in Title IX of Public Law 109-289, the Department of Defense Appropriations Act for fiscal year 2007.

COMMITTEE RECOMMENDATION

The Committee recommends an appropriation of $140,300,000 for Missile Procurement, Air Force. The recommendation is identical to the budget request.

The recommendation provides the following for Missile Procurement, Air Force:

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PROCUREMENT OF AMMUNITION, AIR FORCE

Fiscal year 2007 enacted supplemental appropriations 1

--

Fiscal year 2007 supplemental request

$95,800,000

Committee recommendation

95,800,000

Change from request

--

1 Appropriations provided in Title IX of Public Law 109-289, the Department of Defense Appropriations Act for fiscal year 2007.

COMMITTEE RECOMMENDATION

The Committee recommends an appropriation of $95,800,000 for Procurement of Ammunition, Air Force. The recommendation is identical to the budget request.

The recommendation provides the following for Procurement of Ammunition, Air Force:

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OTHER PROCUREMENT, AIR FORCE

Fiscal year 2007 enacted supplemental appropriations 1

$1,317,607,000

Fiscal year 2007 supplemental request

2,092,754,000

Committee recommendation

2,042,183,000

Change from request

-50,571,000

1 Appropriations provided in Title IX of Public Law 109-289, the Department of Defense Appropriations Act for fiscal year 2007.

COMMITTEE RECOMMENDATION

The Committee recommends an appropriation of $2,042,183,000 for Other Procurement, Air Force. The recommendation is a decrease of $50,571,000 below the budget request.

The recommendation provides the following for Other Procurement, Air Force:

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PROCUREMENT, DEFENSE-WIDE

Fiscal year 2007 enacted supplemental appropriations 1

$145,555,000

Fiscal year 2007 supplemental request

979,380,000

Committee recommendation

934,930,000

Change from request

-44,450,000

1 Appropriations provided in Title IX of Public Law 109-289, the Department of Defense Appropriations Act for fiscal year 2007.

COMMITTEE RECOMMENDATION

The Committee recommends an appropriation of $934,930,000 for Procurement, Defense-Wide. The recommendation is a decrease of $44,450,000 below the budget request.

The recommendation provides the following for Procurement, Defense-Wide:

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CH-47 MODIFICATIONS

The recommendation includes $22,000,000 for the Special Operations Command for modifications to a CH-47 which was lost recently in Iraq. Funding for this aircraft, $30,000,000, is included in Aircraft Procurement, Army.

RESEARCH, DEVELOPMENT, TEST AND EVALUATION

The Committee recommends an additional appropriation of $1,035,350,000 for Research, Development, Test and Evaluation, $412,386,000 below the budget request for fiscal year 2007.

The adjustments to the budget request for Research, Development, Test and Evaluation are shown below:

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RESEARCH, DEVELOPMENT, TEST AND EVALUATION, ARMY

Fiscal year 2007 enacted supplemental appropriations 1

--

Fiscal year 2007 supplemental request

$115,976,000

Committee Recommendation

60,781,000

Change from request

-55,195,000

1 Appropriations provided in Title IX of Public Law 109-289, the Department of Defense Appropriations Act for fiscal year 2007.

COMMITTEE RECOMMENDATION

The Committee recommends an appropriation of $60,781,000 for Research, Development, Test and Evaluation, Army. The recommendation is a decrease of $55,195,000 below the budget request.

The recommendation provides the following for Research, Development, Test and Evaluation, Army:

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COMBAT VEHICLE AND AUTOMOTIVE ADVANCED TECHNOLOGY

The Department of Defense supplemental budget request for fiscal year 2007 proposed an increase of $3,560,000 for Combat Vehicle and Automotive Advanced Technology. The funding would support engineering and technical development of survivability enhancements for the HMMWV family of vehicles. The Committee fully supports all efforts to counter IEDs. Funding for counter IED activities is provided in this Act in the Joint Improvised Explosive Device Defeat Fund.

SOLDIER SUPPORT AND SURVIVABILITY

The Department of Defense supplemental budget request for fiscal year 2007 proposed an increase of $27,625,000 for Soldier Support and Survivability. The requested funding would provide for safety confirmation, capabilities and limitation testing, near term development of enhanced active and passive surveillance and reconnaissance solutions, and development of equipment to replicate enemy devices. The Committee fully supports these activities and has provided funding for such activities in this Act in the Joint Improvised Explosive Device Defeat Fund.

ACCELERATED DEVELOPMENT OF UPGRADES FOR AUTOMATIC TEST EQUIPMENT

The Department of Defense supplemental budget request for fiscal year 2007 proposes an increase of $6,500,000 to the base of $5,430,000 which was provided in the Department of Defense Appropriations Act, 2007 for accelerated development of the next generation of aviation and ground support test and diagnostic capability. The Committee has not supported this increase as an emergency requirement, and recommends the Army pursue such developmental efforts as part of the regular appropriations process.

MATERIAL SYSTEMS ANALYSIS

The Department of Defense supplemental budget request for fiscal year 2007 proposed an increase of $5,410,000 for Material Systems Analysis for projects to improve capabilities to detect and analyze the lethality of improvised explosive devices, and to develop Fusion Oriented C4ISR Utility Simulation (FOCUS). The Committee fully supports counter-IED activities and has provided funding for such activities in this Act in the Joint Improvised Device Defeat Fund.

BIOMETRICS MULTI-MODE CAPABILITY

The Department of Defense Appropriations Act for fiscal year 2007 provides $15,505,000 for the developmental effort related to the Department of Defense Automated Biometrics Identification System and biometric capability that will be managed at the enterprise level. The Department's supplemental request for fiscal year 2007 proposes an additional $8,300,000 to advance the developmental biometrics program in seeking a multi-modal biometric capability, to include fingerprint, face, and iris, and planning for future efforts related to DNA, hand geometry, and palm prints. The Committee includes no funding for such a developmental program increase as part of the fiscal year 2007 supplemental appropriation and recommends the Army include funding for this program in the regular budget process.

DATABASE INTEROPERABILITY FOR SITUATIONAL AWARENESS

The Department of Defense Appropriations Act, 2007 includes $12,154,000 for WWMCCS/Global Command and Control System for the development of applications to continue and enhance interoperability between the Army and Joint command levels. The Department of Defense supplemental appropriations request for fiscal year 2007 seeks an additional $3,800,000 to implement Oracle database applications for ensuring continued interoperability between Global Command and Control System--Joint, and Global Command and Control System--Army. The Committee has not recommended such funding for inclusion in the fiscal year 2007 Department of Defense supplemental appropriations and recommends that the Army fund such systems engineering and software development efforts as part of the regular fiscal year budget request.

RESEARCH, DEVELOPMENT, TEST AND EVALUATION, NAVY

Fiscal year 2007 enacted supplemental appropriations 1

$231,106,000

Fiscal year 2007 supplemental request

460,175,000

Committee recommendation

295,737,000

Change from request

-164,438,000

1 Appropriations provided in Title IX of Public Law 109-289, the Department of Defense Appropriations Act for fiscal year 2007.

COMMITTEE RECOMMENDATION

The Committee recommends an appropriation of $295,737,000 for Research, Development, Test and Evaluation, Navy. The recommendation is a decrease of $164,438,000 below the budget request.

The recommendation provides the following for Research, Development, Test and Evaluation, Navy:

The fiscal year 2007 supplemental request includes $30 million for the Ground-based Operational Surveillance System (G-BOSS) and $7 million for Joint Counter Radio Controlled IED Electronic Warfare (CREW) for research, development, test and evaluation activities. The Committee fully supports all efforts to counter Improvised Explosive Devices (IED) and provides funding for this and other counter IED activities in the Joint Improvised Explosive Device Defeat Fund.

JOINT LIGHTWEIGHT TACTICAL VEHICLE (JLTV)

The Department of Defense request for supplemental appropriations for fiscal year 2007 proposes $36,844,000 for Joint Lightweight Tactical Vehicle (JLTV). The Committee recommends that requirements for long term research, development, test and evaluation be addressed in the regular fiscal year budget request.

MARINE CORPS COMMUNICATIONS

The Department of Defense request for supplemental appropriations for fiscal year 2007 proposes $165,348,000 for Marine Corps Communication Systems. While the Committee supports requests that will be quickly fielded, the Committee recommends that requirements for long term research, development, test and evaluation be addressed in the regular fiscal year budget request.

RESEARCH, DEVELOPMENT, TEST AND EVALUATION, AIR FORCE

Fiscal year 2007 enacted supplemental appropriations 1

$36,964,000

Fiscal year 2007 supplemental request

220,721,000

Committee recommendation

132,928,000

Change from request

-87,793,000

1 Appropriations provided in Title IX of Public Law 109-289, the Department of Defense Appropriations Act for fiscal year 2007.

COMMITTEE RECOMMENDATION

The Committee recommends an appropriation of $132,928,000 for Research, Development, Test and Evaluation, Air Force. The recommendation is a decrease of $87,793,000 below the budget request.

The recommendation provides the following for Research, Development, Test and Evaluation, Air Force:

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RESEARCH, DEVELOPMENT, TEST AND EVALUATION, DEFENSE-WIDE

Fiscal year 2007 enacted supplemental appropriations 1

$139,644,000

Fiscal year 2007 supplemental request

650,864,000

Committee recommendation

545,904,000

Change from request

-104,960,000

1 Appropriations provided in Title IX of Public Law 109-289, the Department of Defense Appropriations Act for fiscal year 2007.

COMMITTEE RECOMMENDATION

The Committee recommends an appropriation of $545,904,000 for Research, Development, Test and Evaluation, Defense-Wide. The recommendation is a decrease of $104,960,000 below the budget request.

The recommendation provides the following for Research, Development, Test and Evaluation, Defense-Wide:

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REVOLVING AND MANAGEMENT FUNDS

DEFENSE WORKING CAPITAL FUNDS

Fiscal year 2007 enacted supplemental appropriations 1

--

Fiscal year 2007 supplemental request

$1,315,526,000

Committee recommendation

1,315,526,000

Change from request

--

1 Appropriations provided in Title IX of Public Law 109-289, the Department of Defense Appropriations Act for fiscal year 2007.

The Committee recommends an appropriation of $1,315,526,000, the same level as the budget request, for the Defense Working Capital Fund accounts for the Army, Navy, and Defense-wide.

NATIONAL DEFENSE SEALIFT FUND

Fiscal year 2007 enacted supplemental appropriations 1

--

Fiscal year 2007 supplemental request

$5,000,000

Committee recommendation

5,000,000

Change from request

--

1 Appropriations provided in Title IX of Public Law 109-289, the Department of Defense Appropriations Act for fiscal year 2007.

COMMITTEE RECOMMENDATION

The Committee recommends an appropriation of $5,000,000 for the National Defense Sealift Fund. The recommendation is the same as the budget request.

OTHER DEPARTMENT OF DEFENSE PROGRAMS

DEFENSE HEALTH PROGRAM

Fiscal year 2007 enacted supplemental appropriations

--

Fiscal year 2007 supplemental request

$1,073,147,000

Committee recommendation

2,789,703,000

Change from request

+1,716,556,000

DEFENSE HEALTH PROGRAM OVERVIEW

The Committee recommends a total appropriation of $2,789,703,000 for the Defense Health Program. This is an increase of $1,716,556,000 above the budget request. The funding contained in this bill will provide medical and dental services to active forces and mobilized Reserve Components, and their family members as they support Operation Iraqi Freedom and Operation Enduring Freedom.

The Committee strongly believes that the additional funds recommended will have an important effect on the military health care system's ability to adequately treat our wounded soldiers. The additional $1,716,556,000 is allocated to these important initiatives:

$450,000,000 for Post Traumatic Stress Disorder/Counseling

$450,000,000 for Traumatic Brain Injury

$730,000,000 for Private Sector Care

$61,950,000 for amputee care

$12,000,000 for care givers support programs

$14,800,000 for burn care

COMMITTEE RECOMMENDATION

The Committee recommends a total of $2,789,703,000 for the Defense Health Program. The recommendation is an increase of $1,716,556,000 above the budget request.

The recommendation provides the following for Defense Health Program:

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SUSTAINING THE MILITARY HEALTH CARE BENEFIT

The medical mission of the Department of Defense (DoD) is to enhance DoD and our Nation's security by providing health support for the full range of military operations and sustaining the health of all active duty, Reserve Components, retirees and their dependents.

When the fiscal year 2007 budget request was submitted, it assumed savings anticipated from legislation that would have significantly increased fees and insurance premiums on military members. The legislation was not enacted by Congress, leaving the Department with a greater than $2,000,000,000 `hole' for fiscal year 2007. The Committee provided $1,400,000,000 in the continuing resolution for fiscal year 2007 (Public Law 110-5) for the Defense Health Program.

The Committee recommendation includes an additional $730,000,000 to make the Defense Health Program whole for fiscal year 2007. The Committee strongly urges the Department to examine other ways to sustain the benefit without relying on Congress to enact legislation that would increase the out-of-pocket costs to the beneficiaries.

AMPUTEE HEALTH CARE

The Committee recommends a total increase of $61,950,000 for amputee health care and orthopaedic extremity trauma. The additional monies will enhance health care services and operations at Walter Reed, Brooke Army Medical Center/Center for the Intrepid, Landstuhl Regional Medical Center and National Naval Medical Center--Balboa.

BLAST INJURY PREVENTION, MITIGATION AND TREATMENT

One of the alarming features of modern warfare is the increasing occurrence of traumatic brain injury (TBI). The growing number of soldiers with TBI is a challenge for the Military Health System.

The Committee approves $14,800,000 for the Army Surgeon General's Blast Injury Prevention, Mitigation and Treatment Initiative. The additional $7,700,000 to the budget request will provide support to initiatives targeted at improving our ability to prevent and manage blast injuries. This funding supports the Defense and Veterans Brain Injury Center (DVHIC).

BROOKE ARMY MEDICAL CENTER BURN CENTER

The Committee has provided an additional $7,000,000 to the budget request for specialized burn injury care.

CARE GIVER SUPPORT PROGRAMS

The Committee is concerned about the stress and fatigue care givers at Military Treatment Facilities (MTFs) endure as they care for wounded soldiers. The Committee provides $12,000,000 for Walter Reed Army Medical Center, Brooke Army Medical Center, National Naval Medical Center and Landstuhl Regional Medical Center to enhance the current care givers support programs.

The additional funding is to be used for programs that assist with fatigue, stress and mental health related issues using holistic approaches, and behavior models in support of their unique health needs. These professionals are our most important asset in ensuring that wounded soldiers have the best care possible.

MEDICAL SUPPORT FOR TACTICAL UNITS

The Committee directs the Department of the Army to address medical requirements for those tactical units currently deployed to or returning from the Iraq or Afghanistan theaters. The Committee directs the Department of the Army to focus funding on the replenishment of medical supply and equipment needs within the combat theaters, to include bandages and the provision of medical care for soldiers who have returned home in a medical holdover status.

HEALTH CARE IN SUPPORT OF ARMY MODULAR FORCE CONVERSION AND GLOBAL POSITIONING

It has been brought to this Committee's attention that the Army has been directed to cover costs associated with health care support of Army modular force (AMF) conversion and global positioning. The cost of these movements is estimated at $68 million and will enable the Army to provide the capacity to meet increases in the demand for health care created as the Army repositions forces. This necessary funding is required to ensure that soldiers, particularly those returning from combat, and their families are able to access military health care.

Therefore, the Committee directs the Assistant Secretary for Health Affairs and the Surgeon General of the Army to coordinate an effort and report back to the congressional defense committees by May 31, 2007 on how these anticipated costs will be funded to ensure soldiers and their families affected by AMF and global positioning will have access to the health care they deserve.

WALTER REED ARMY MEDICAL CENTER-BUILDING 18

Since 2002, Walter Reed has provided highly personalized health care by treating more than 6,000 wounded soldiers from combat operations in Afghanistan and Iraq. As wounded soldiers recover and regain strength, they move from the hospital to a number of buildings on or near the Walter Reed campus.

This Committee is deeply concerned and frustrated by the lack of attention paid to hospital infrastructure, specifically building 18 on the Walter Reed campus. Clearly, the Army's Medical Command had no idea what was going on `under their noses.' The Committee provides an additional $20,000,000 and expects the Army to use the additional funding for infrastructure repairs and upgrades. The Committee expects that the Army will keep the congressional defense committees regularly and fully apprised of its progress toward rectifying this problem.

MEDICAL SYSTEM ADMINISTRATION IMPROVEMENTS

Recent reports indicate that the Department of Defense's system for managing wounded outpatient and medical-hold soldiers, as well as the processes for evaluating soldiers' eligibility for disability benefits, have been severely strained, causing soldiers' needs to go unmet. In particular, the thousands of soldiers wounded in the wars in Iraq and Afghanistan have overwhelmed the system, leading to failure to complete disability reviews in a timely manner. In many cases the lack of management, shortages in caseworkers and specialists to help identify depression and post traumatic stress disorder, inadequate medical hold facilities and even wheelchair access all have created additional obstacles for soldiers to overcome as they convalesce.

Therefore, within the funds provided for the Defense Health Program, the Committee directs that $30,000,000 be used for strengthening the recruitment and formalized training for administrative and casework personnel, and for enhancing the programs in which they participate. The Committee further directs that these funds be allocated directly to military medical centers with significant medical-hold populations and large backlogs of patients who have yet to be evaluated for disability benefits.

DRUG INTERDICTION AND COUNTER-DRUG ACTIVITIES, DEFENSE

Fiscal year 2007 enacted supplemental appropriations 1

$100,000,000

Fiscal year 2007 supplemental request

259,115,000

Committee recommendation

259,115,000

Change from request

--

1 Appropriations provided in Title IX of Public Law 109-289, the Department of Defense Appropriations Act for fiscal year 2007.

COMMITTEE RECOMMENDATION

The Committee recommends a total of $259,115,000 for military personnel; operation and maintenance, procurement and research, development, test and evaluation for drug interdiction and counter-drug activities of the Department of Defense. This is the same amount requested by the President.

RELATED AGENCIES

INTELLIGENCE COMMUNITY MANAGEMENT ACCOUNT

Fiscal year 2007 enacted supplemental appropriations 1

$19,265,000

Fiscal year 2007 supplemental request

66,726,000

Committee recommendation

57,426,000

Change from request

-9,300,000

1 Appropriations provided in Title IX of Public Law 109-289, the Department of Defense Appropriations Act for fiscal year 2007.

COMMITTEE RECOMMENDATION

The Committee recommends a total of $57,426,000 for the Intelligence Community Management Account, a decrease of $9,300,000 from the budget request.

GENERAL PROVISIONS--THIS CHAPTER

Chapter 3 of Title 1 contains several general provisions, many of which extend or modify war-related authorities included in previous Acts. A brief description of the recommended provisions follows:

Section 1301 establishes the period of availability for obligation for appropriations provided in this chapter.

Section 1302 provides the Department's request for transfer authority of $3,500,000,000 for funds in this chapter.

Section 1303 provides for the obligation and expenditure of funds related to activities pursuant to section 504(a)(1) of the National Security Act of 1947.

Section 1304 provides that none of the funds appropriated in this chapter may be obligated and expended to finance programs or activities denied by Congress in fiscal year 2006 or 2007 appropriations for the Department of Defense or to initiate a new start without prior approval.

Section 1305 provides for transfers to the Defense Cooperation Account.

Section 1306 provides for not to exceed $100,000,000 of funds under `Drug Interdiction and Counter-Drug Activities, Defense' may be used to support counter-drug activities of certain governments, and that such support is in addition to any other authority to provide assistance.

Section 1307 provides for $456,000,000 of funds provided under `Operation and Maintenance, Army' to fund the Commander's Emergency Response Program. The provision also requires quarterly reports to the congressional defense committees.

Section 1308 provides that for construction projects in Iraq and Afghanistan funded with operation and maintenance funds, supervisory and administrative costs may be obligated when the contract is awarded.

Section 1309 amends section 9010 of the Department of Defense Appropriations Act, 2007, relating to submission of a report measuring stability and security in Iraq. The section amends the due date of the report.

Section 1310 amends section 1005(c)(2) of the National Defense Authorization Act, relating to common-funded budgets of the North Atlantic Treaty Organization.

Section 1311 prohibits the establishment of any permanent military installation or base of United States Armed Forces in Iraq and prohibits the exercise of United States control over any oil resource of Iraq.

Section 1312 provides for the transfer of funds from `Operation and Maintenance, Defense-Wide' to Department of State `Economic Support Fund' to support provincial reconstruction teams and requires notification of the transfer to the congressional defense committees.

Section 1313 prohibits the use of funds to contravene laws or regulations promulgated to implement the United Nations Convention Against Torture and Other Cruel, Inhuman or Degrading Treatment or Punishment.

Section 1314 limits the availability of funds available in this Act under the heading `Iraq Security Forces Fund' and `Afghanistan Security Forces Fund' until the Secretary of Defense submits to the congressional defense committees unit level transition assessments of the Iraq and Afghanistan security forces. This provision also requires the Director of the Office of Management and Budget, (in consultation with the Secretary of Defense; the Commander, Multi-National Security Transition Command-Iraq; and the Commander, Combined Security Transition Command-Afghanistan), to submit a report detailing, among other assessments, the total cost of training and equipping the Iraq and Afghanistan security forces.

Section 1315 prohibits the provision of award fees to any defense contractor contrary to provisions of section 814 of the National Defense Authorization Act, 2007.

Section 1316 limits to not more than 90 percent of the funds provided in this chapter for operation and maintenance until the Secretary of Defense submits to the congressional defense committees a report detailing the use of contracted services to support U.S. military operations in Iraq and Afghanistan. The provision further reduces appropriations under the aforementioned headings in this Act by $815,000,000 due to anticipated contractor efficiencies.

Sec. 1317 provides, in cases where a minor child is the next of kin, the ability for the service member to designate the grandparents, siblings, or guardian to receive part or all of the benefit to care for the child.

Section 1318 provides up to 170 heavy and light armored vehicles for force protection purposes in Iraq and Afghanistan.

Section 1320 provides appropriations to implement recommendations of the Army Inspector General with regard to trained military attorneys dedicated to representing soldiers who are pursuing claims before physical evaluation boards and earlier in the Army disability evaluation system process.

CHAPTER 4

DEPARTMENT OF ENERGY

ATOMIC ENERGY DEFENSE ACTIVITIES

NATIONAL NUCLEAR SECURITY ADMINISTRATION

DEFENSE NUCLEAR NONPROLIFERATION

The Committee recommendation provides $150,000,000 for Defense Nuclear Nonproliferation activities by the National Nuclear Security Administration. Within the amounts provided, $136,000,000 is included for the International Nuclear Materials Protection and Cooperation program, including $25,000,000 for Rosatom Weapons Complex activities to begin comprehensive security upgrades at Mayak plutonium facilities where Russia recently agreed to allow access to U.S. teams for cooperative security work; $87,000,000 for the Megaports initiative to accelerate activities in host countries with seaports that have signed implementation agreements but are currently not funded to complete deployment of radiation detection equipment for scanning cargo containers; and $24,000,000 for additional high priority activities. Further, the recommendation includes $14,000,000 for the Global Threat Reduction Initiative for Kazakhstan spent fuel security activities.

CHAPTER 5

DEPARTMENT OF HOMELAND SECURITY

DEPARTMENTAL MANAGEMENT AND OPERATIONS

ANALYSIS AND OPERATIONS

The Committee recommends an additional $35,000,000 for the expansion of the State and Local Fusion Center program. Consistent with recommendations made in the 9/11 Commission report, the Committee has heard time and time again from homeland security experts that national intelligence and homeland security efforts can be improved by involving State and local law enforcement. The fusion center program is designed to do this, but is in its infancy phase. As this program matures, the Committee directs the Department's Chief Intelligence Officer to provide a quarterly update on the progress establishing State and local fusion centers, including the number and locations of operational facilities; the number of Department of Homeland Security employees located at these facilities; the privacy protection policies of each facility, including the number of facility personnel trained in Federal privacy, civil rights, and civil liberties standards; and the number and location of local law enforcement agents approved to receive and review classified intelligence information.

CUSTOMS AND BORDER PROTECTION

SALARIES AND EXPENSES

(INCLUDING TRANSFER OF FUNDS)

The Committee recommends an additional $100,000,000 to improve significantly the ability of Customs and Border Protection (CBP) to target and analyze US-bound cargo containers, achieve a capacity to screen 100 percent of such cargo overseas, and double the number of containers that are subject to physical inspections. The funding would support hiring up to 1,000 additional CBP Officers, Intelligence Analysts, and support staff, to be located at Container Security Initiative locations overseas, U.S. ports of entry, or the National Targeting Center. The funding would also support enhanced container analytic and targeting systems that use commercial and government databases.

The Committee directs CBP to permit no further decline in Border Patrol presence on the Northern Border. Although CBP has informed the Committee that it plans to increase Border Patrol staffing on the Northern Border, such staffing actually declined 7 percent in fiscal year 2006, while overall Border staffing grew by 10 percent nationwide. The Committee understands that CBP plans to have 1,179 agents on the Northern Border by the end of fiscal year 2007, 191 more than the 2005 level. Any reduction from this planned level should be immediately reported to the Committee.

AIR AND MARINE INTERDICTION, OPERATIONS, MAINTENANCE, AND PROCUREMENT

The Committee recommends an additional $150,000,000 to accelerate the establishment and acquisition of aircraft and facilities for the Northern Border. This includes funding for site acquisition; design and building at all five of the currently planned airwings; acquisition of planned air assets; and associated operational costs, such as relocation of aircraft, to enable the sites to become fully operational as soon as possible.

TRANSPORTATION SECURITY ADMINISTRATION

AVIATION SECURITY

The Committee recommends an additional $1,250,000,000 for `Aviation Security'. Of the funds recommended under this heading, $1,000,000,000 is provided for the procurement and installation of explosive detection systems (EDS) in airports that have been identified in recent prioritization models as deriving significant security benefits from the deployment of in-line baggage screening systems. Both TSA and the Government Accountability Office have reported that in-line baggage screening: (1) reduces security risks at airports nationwide, (2) is more efficient because the number of checked bags screened could more than double when systems are placed in-line, (3) reduces the number of bags that require labor intensive secondary screening, (4) lowers life-cycle costs, and (5) significantly reduces injuries. The recently released baggage screening investment study noted that `without expedited capital investments, the life-cycle replacement requirements for initially deployed screening systems will impede investments in new optimal systems, slowing deployment of additional EDS equipment to additional airports and increasing costs'.

Of the total, $90,000,000 is provided for the deployment and pilot testing of advanced checkpoint explosive detection equipment and screening techniques to determine preferred operational and equipment protocols for these new systems. Eligible systems may include, but are not limited to: whole body imagers, liquid explosives detectors, and automated explosive detection systems. With the funding provided under this heading for checkpoints, the Committee will have provided $263,366,000 for these activities in 2007.

The remaining $160,000,000 is provided to increase the screening of air cargo carried on passenger aircraft and put TSA on a path to screen all such air cargo. This funding may be used to purchase and install additional screening equipment, such as explosive detection and trace systems, for the top 42 airports that handle 95 percent of the air cargo carried on passenger aircraft. Funding has also been provided to procure up to 10 additional canine teams at each of the high volume cargo airports to augment ongoing screening efforts. This funding increase is based on recent testimony by the Government Accountability Office on the effectiveness of canines in detecting explosives as well as promising, new air cargo detection techniques that are utilized outside of the United States, which could be deployed here.

NATIONAL PROTECTION AND PROGRAMS

INFRASTRUCTURE PROTECTION AND INFORMATION SECURITY

The Committee is pleased that the Department of Homeland Security and the Department of Commerce finally have a Memorandum of Understanding in place to award the $1,000,000,000 state interoperable grant program. Nevertheless, the Department has not made adequate progress developing State interoperable communications plans or collecting information to populate the National Baseline Survey for communications interoperability. State interoperable communications grants will be wisely invested only with adequate planning. As a result, the Committee has provided $25,000,000 for the Office of Emergency Communications to work in conjunction with the Science and Technology Office of Interoperable Communications to develop State interoperable communications plans similar in scope to those already in place for Virginia and Nevada. Within 30 days of enactment, the Committee directs the Offices of Emergency Communications and Interoperable Communications to provide Congress a detailed project plan for execution of a nationwide State interoperable communications planning effort, including key milestones for achievement of the decisions necessary to support the Public Safety Interoperable Communications Grant Program.

In addition, the Committee encourages the Department to allow states that do not use reallocated public safety spectrum to be eligible for these grant funds as long as their systems are compatible with those using reallocated spectrum.

FEDERAL EMERGENCY MANAGEMENT AGENCY

SALARIES AND EXPENSES

The Committee recommends $25,000,000 for salaries and expenses. Of the total amount, $15,000,000 is provided for regional disaster communications equipment to strengthen FEMA's ability to respond expeditiously to disasters across the country and $10,000,000 is provided to strengthen mutual aid agreements. Such mutual aid agreements enable State and local governments to plan, train, and exercise in preparation for future natural or man-made disasters. The Committee directs FEMA to provide a spending plan prior to obligation of these funds. The `Salaries and Expenses' account combines the former `Administrative and Regional Operations' and `Preparedness, Mitigation, Response, and Recovery' accounts and returns FEMA operational funding to one account, as existed prior to the creation of the Department of Homeland Security.

STATE AND LOCAL PROGRAMS

The Committee recommends $415,000,000 for `State and Local Programs'. In order to strengthen the country's critical infrastructure, $190,000,000 is provided for port security grants and $225,000,000 is provided for intercity rail passenger transportation, freight rail, and transit security grants. All funding is to be awarded in fiscal year 2007. The transit industry estimates that funding needs for security improvements total $6 billion, and less than 10 percent of this has been provided since September 11, 2001. The Coast Guard estimated in 2003 that port facility improvements and operational costs of fully implementing the Maritime Transportation Security Act total over $7 billion, and less than 16 percent of this has been provided since September 11, 2001.

EMERGENCY MANAGEMENT PERFORMANCE GRANTS

The Committee includes $100,000,000 for `Emergency Management Performance Grants'. The program is used by State and local governments to improve preparedness and response capabilities, enhancement of which is critical to our nation.

DOMESTIC NUCLEAR DETECTION OFFICE

SYSTEMS ACQUISITION

The Committee recommends $400,000,000 to acquire and deploy additional portal radiation detection monitors at all locations the Department of Homeland Security has determined necessary. The Committee anticipates that this funding may not be used to acquire advanced spectroscopic radiation monitors until the Secretary of the Department of Homeland Security certifies that these systems will achieve a significant increase in operational effectiveness as required by Public Law 109-295. This certification is anticipated in the summer of 2007.

GENERAL PROVISIONS--THIS CHAPTER

The Committee includes a provision clarifying the Congressional intent of chemical site security regulatory authorities enacted in the 2007 Department of Homeland Security Appropriations Act. In the provision, the Committee requires the Department to ensure that site security plans for chemical facilities comply with State and local regulations governing the security of those installations, if such State and local regulations provide for an equivalent or higher level of plant security or safety. The Committee remains unconvinced by Administration arguments that Federal regulations should supplant more robust State or local regulations. In addition, the Committee provides technical corrections to the original chemical site security regulatory authorities, removing restrictions on Departmental approval processes, clarifying information security standards for regulatory adjudication processes, and streamlining the compliance enforcement authorities delegated to the Secretary.

CHAPTER 6

LEGISLATIVE BRANCH

HOUSE OF REPRESENTATIVES

SALARIES AND EXPENSES

ALLOWANCES AND EXPENSES

The Committee recommends an additional amount of $6,437,000 for Allowances and Expenses, Business Continuity and Disaster Recovery, including replacement of emergency equipment.

CHAPTER 7

DEPARTMENT OF DEFENSE

MILITARY CONSTRUCTION

Iraq.--Central Command (CENTCOM) has indicated its intention to eventually consolidate the U.S. force posture in Iraq into four contingency operating bases (COBs) and four convoy centers. The four COBs are Al Asad, Balad/Camp Anaconda, Camp Speicher, and Victory Base. The four convoy centers are Camp Adder, Korean Village, Qayyarah West, and Scania. All of the projects contained in the Committee's recommendation will be executed at one of these eight locations. The Committee has carefully reviewed requested military construction projects for Iraq to ensure that they meet temporary contingency construction standards. The Committee has approved only those projects judged to have the greatest impact on force protection, safety, and quality of life for troops on the front lines. The Committee does not support the establishment of permanent bases in Iraq, and does not include in this recommendation any funds to establish any such base, or convert any base in Iraq from a temporary to a permanent status.

The Committee understands that CENTCOM has already begun the consolidation of bases in Iraq from over 120 in 2006 to a current 67. As there is no status of forces agreement with the Government of Iraq, the Committee directs CENTCOM to submit a report listing each base that has been closed, the entity to which each base was transferred, the current value of any infrastructure left behind, and any other pertinent information. This report shall be submitted no later than 30 days after the enactment of this Act and updated on a quarterly basis thereafter.

Use of emergency war military construction funds.--The Committee believes that funds appropriated for emergency wartime military construction requirements in the Central Command area of responsibility should be used solely for that purpose to the fullest extent possible. When funds become available due to scope reductions or cancellations, they should not be reprogrammed for domestic or overseas requirements that are not emergency needs directly supporting contingency operations. This direction does not, however, prohibit the transfer of expiring funds to the foreign currency fluctuations account.

Military Construction and Stabilization Operations.--The Committee believes that military construction projects present an opportunity to help fulfill Department of Defense Directive 3000.05, a policy on stability operations which includes the long-term goal `to help develop indigenous capacity for securing essential services' and `a viable market economy,' by utilizing and developing such capacity for both construction and maintenance of facilities in countries such as Afghanistan and Iraq, in a manner consistent with military necessity. The Committee therefore directs the Department to submit a report on how this goal is taken into account in the military construction contracting process. This report shall be submitted no later than April 6, 2007.

MILITARY CONSTRUCTION, ARMY

The Committee recommends $1,329,240,000 for Military Construction, Army, instead of $1,381,290,000 as requested. The funds are provided as follows:

Insert graphic folio 238 33466A.094

Life Support Areas and Facilities Replacement, Iraq.--The Administration requested $75,000,000 for `life support areas' consisting of containerized housing and associated facilities to accommodate a projected shortage in housing at consolidated locations in Iraq. In addition, the Administration requested $96,000,000 to replace deteriorated temporary facilities supporting operations and quality of life, such as administrative facilities, chapels, and morale, welfare and recreation (MWR) facilities. The Committee recommends full funding for these requests, but has broken out both requests by location, including costs for contingency, design, and other overhead costs. The only funding not specified as to location is $8,000,000 provided under `facilities replacement' for anti-terrorism/force protection systems, such as T-wall barriers.

Counter-IED road projects, Afghanistan.--The Administration requested $369,690,000 to construct paved roads and river bed crossings in various locations in Afghanistan to reduce the threat of improvised explosive devices. The Committee recommends full funding of the request; however, the Committee believes that further information is needed to assess the actual effect of this approach. The Committee notes that these road projects are scheduled for completion by fall 2008. The Committee therefore directs CENTCOM to provide no later than October 1, 2009, a detailed assessment of the impact of counter-IED roads in Afghanistan. This report should include, for each section of road funded in this Act, data allowing for a useful comparison of the frequency of IED attacks and the number of casualties before and after the completion of that road section. The report should also include an assessment of how enemy IED tactics in Afghanistan have evolved and adapted in response to this approach.

The Committee has an additional concern about the contributions of the North Atlantic Treaty Organization (NATO) and coalition nations to military-use road construction. Given the expansion of responsibility for the International Security Assistance Force to the entire country, the Committee believes that NATO and coalition partners should make significant contributions to military infrastructure in Afghanistan, including roads. The Committee is aware that the U.S. retains primary responsibility for the counterterrorism combat mission, but believes that any road infrastructure in Afghanistan is of potential benefit to ISAF and coalition partners. The Committee has therefore included bill language prohibiting the obligation of these funds until the Department of Defense submits a report explaining how military road construction in Afghanistan is coordinated with NATO and coalition nations, including funding contributions from these sources.

Consolidated Compound, Kabul, Afghanistan.--The Administration requested $25,600,000 for the third phase of a consolidated compound for U.S. personnel in Kabul. The Committee is inclined to support the request, but is concerned that the 1391 form as submitted does not accurately reflect the unaccompanied housing requirement. The Committee therefore recommends the funding, but includes bill language prohibiting the obligation of these funds until a revised 1391 form is submitted and approved.

`Growing the Force.'--The Administration requested $401,700,000 to prepare for proposed end-strength increases of up to 65,000 soldiers over five years, including $250,000,000 in unspecified construction and $151,700,000 in planning and design. The Army has thus far failed to provide adequate justification for this request. While the Committee understands the need for the request, it is reluctant to provide a blank check for such a large sum for construction to support a policy that has not yet been approved by Congress. The Committee therefore recommends funding the request, but includes bill language prohibiting the obligation of these funds until an expenditure plan (including 1391 forms for individual projects and a detailed explanation of the planning and design request) are provided for the $401,700,000 requested for fiscal year 2007, as well as the funds included to support `growing the force' in the fiscal year 2008 request, including the $1,991,129,000 requested for Army military construction, the $266,000,000 requested for Army family housing construction, and the $94,000,000 requested for Army National Guard military construction. This plan should also include an explanation of how the additional $11,857,000 requested for Army family housing operation and maintenance in the fiscal year 2008 request will be applied to each sub-account.

Joint Effects Processing Depot, Dover AFB, Delaware.--The Committee recommends $17,500,000 to relocate the joint effects processing depot at Aberdeen Proving Ground, Maryland, to Dover AFB, Delaware. Consolidating this facility with mortuary affairs at Dover will help to ensure the timely and respectful handling of the personal effects of servicemembers killed overseas so they may be returned to the appropriate persons. This project was included in the Army's fiscal year 2008 budget request, but the Committee believes it should be accelerated.

MILITARY CONSTRUCTION, NAVY AND MARINE CORPS

The Committee recommends $389,300,000 for Military Construction, Navy and Marine Corps, instead of $412,500,000 as requested by the Administration. The funds are provided as follows:

Diesel Generator Facility, Guantanamo NS, Cuba.--The Committee does not recommend $22,000,000 requested by the Administration for a diesel generator facility at Guantanamo, as the primary purpose of this request is to support detainee operations. At the same time, the Committee notes the inadequacy and inefficiency of current power generation facilities at Guantanamo, regardless of the future of the detainee mission. The Committee is supportive of efforts to improve power generation at Guantanamo to support other missions and the quality of life of U.S. personnel, and urges Navy to make this and other quality of life projects at Guantanamo a higher priority. The Committee directs Navy to explore renewable energy sources, such as solar power, and evaluate the cost efficiency of these alternatives for the recapitalization of power generation at Guantanamo and report these findings to the Committee no later than 60 days after enactment of this Act.

`Growing the Force'.--The Administration requested $324,270,000 to prepare for proposed end-strength increases of up to 27,000 marines over five years. Of the amount requested, $200,000,000 was requested under planning and design. The Committee understands that of this amount, only $46,200,000 is actually required for planning and design, while the balance of $153,800,000 is intended for site preparation to support temporary buildings. The Committee recommends providing this funding, but includes bill language prohibiting the obligation of the $200,000,000 for site preparation and planning and design until the Marine Corps provides an expenditure plan (including individual 1391 forms for each construction project and a detailed explanation of the planning and design request), as well as the funds included to support `growing the force' in the fiscal year 2008 request, including the $383,120,000 for Navy and Marine Corps military construction, and the $75,000,000 for Navy and Marine Corps family housing. The Committee additionally directs the Marine Corps to include on the 1391s for site preparation projects the amounts to be obtained from other appropriations for any temporary facilities and associated equipment required.

MILITARY CONSTRUCTION, AIR FORCE

The Committee recommends $60,200,000 for Military Construction, Air Force, the same as the Administration's request. The funds are provided as follows:

BASE REALIGNMENT AND CLOSURE ACCOUNT 2005

The Committee recommends an additional $3,136,802,000 for the Base Realignment and Closure Account 2005. With the $2,489,421,000 provided in the Continuing Appropriations Resolution, 2007 (H.J. Res. 20), this additional amount will fully fund the Administration's fiscal year 2007 request of $5,626,223,000. The Committee includes bill language requiring the Department of Defense to submit an expendture plan for this additional amount within 30 days of the enactment of this Act.

DEPARTMENT OF VETERANS AFFAIRS

Recent events at Walter Reed Army Medical Center highlight the growing concern that this Committee has over our nation's ability to provide for our veterans. The number and severity of wounded that have resulted from Operation Iraqi Freedom (OIF) and Operation Enduring Freedom (OEF) have placed substantial additional strain on the systems that support our troops and our veterans. The backlog for veteran benefits continues to grow as the Department of Veterans Affairs works to ensure that all claims are processed in a timely and equitable manner. We must act now to provide the Department with the resources it needs to address current shortfalls and prepare for future demand. The Department of Veterans Affairs estimates they will treat over 209,000 OIF/OEF veterans in fiscal year 2007. Additionally, they estimate that this number will grow by 26 percent for fiscal year 2008. The injuries and illnesses most associated with this war require prompt diagnosis and treatment if we are to ensure an optimal recovery. It is essential that we provide the Department with the resources that it needs now to meet this critical patient demand without sacrificing the care that it provides to all veterans or allowing facility maintenance to be deferred. The Department reports that 38 percent of the OIF/OEF veterans that have sought care with the Veterans Health Administration have had a mental condition or concern and the Department continues to develop initiatives to improve access. The polytrauma centers provide comprehensive care to veterans with the most serious cases of Traumatic Brain Injury (TBI) and they are currently in the process of increasing their TBI capabilities and developing a screening process to improve diagnosis. While the Committee commends the Department for the significant improvements that have been made to the healthcare delivery system, concerns have been raised that more needs to be done now to ensure that these veterans will have timely access to the health care that they need and that the Veterans Health Administration will not be forced to meet these urgent medical demands at the cost of quality care for all veterans. Therefore, the recommendation includes additional funding to specifically address the healthcare needs of the OIF/OEF veterans.

VETERANS BENEFITS ADMINISTRATION

COMPENSATION AND PENSIONS

The Committee recommendation includes $20,000,000 for Compensation and Pensions. The funding provided is to be used for a pilot program for use of contract physicians for disability examinations as authorized by law.

VETERANS HEALTH ADMINISTRATION

MEDICAL SERVICES

The Committee recommendation includes $414,982,000 for Medical Services for the Veterans Health Administration. The amount includes $56,000,000 for prosthetics, $30,000,000 for a new Level I comprehensive polytrauma center, $100,000,000 to be available for contract mental health care if appointment waiting times exceed 30 days and $228,982,000 for treatment of veterans of the global war on terror.

The devastating impact of improvised explosive devices in Iraq and Afghanistan has produced unprecedented trauma resulting in increased amputations and a high frequency of traumatic brain injury. The Committee includes $30,000,000 for a new Level I comprehensive polytrauma center. Congress provided funding in fiscal year 2005 to establish four Level I comprehensive polytrauma centers, which are located in Richmond, Virginia; Tampa, Florida; Minneapolis, Minnesota; and Palo Alto, California. These centers provide a wide-range of rehabilitative services for both active duty and veterans suffering from a traumatic brain injury and are critical to reintegrating the veteran back into the community. The Committee has included funding to establish a fifth center to improve access to patients in the center of the United States.

Prosthetics research conducted through the Department and other research programs has led to vast improvements in the quality and usefulness of prosthetic devices. The Committee includes $56,000,000 to allow the Department to maintain an adequate supply of high quality prosthetics for veterans.

The Committee includes $100,000,000 for contract mental health services. The Committee has received testimony from the Department that of the 73,000 veterans having symptoms consistent with PTSD, 34,000 could have the disorder. In addition, the Vet Centers have identified 5,000 veterans that could also suffer from PTSD, for a total of 39,000. For many of these veterans, receiving treatment closer to home could make the difference between the veteran actually getting the help they need or not. The Department has the authority to contract for healthcare services when they are not available through the Department's system, therefore, the Committee has included additional funds to allow the Department to contract for mental health care if appointment waiting times exceed 30 days or travel times to care create a negative impact on patient compliance.

The Committee includes $228,982,000 for medical services directed to OIF/OEF patients. For fiscal year 2007, the Department estimates that the number of OIF/OEF patients in the system will be 209,308. In fiscal year 2006, the VA budgeted for 110,556 OIF/OEF patients in the system, but the actual number turned out to be 155,272, a 40 percent increase. While the Committee understands the Department has revised the model used to calculate these projections and expects to track their estimates more closely, the Committee is concerned the model may still be immature. Therefore, the Committee has included additional funding to provide a 40 percent contingency. This will ensure that adequate medical services funding for OIF/OEF veterans is available if the model assumptions are inaccurate.

MEDICAL ADMINISTRATION

The Committee recommendation includes $256,300,000 for Medical Administration. The amount provided includes $6,300,000 to support the Department's initiative to establish polytrauma support clinic teams at each of the Department's 21 regional health care networks to further improve case management for veterans with traumatic brain injury or other severe injuries and illness.

The Committee also includes $250,000,000 for medical administration to ensure that the Department has sufficient personnel to support the growing number of OIF/OEF veterans and to maintain a high level of service to all veterans in the system.

MEDICAL FACILITIES

The Committee includes $45,000,000 for upgrades to polytrauma care centers. The Department has four Level I comprehensive polytrauma care centers and 17 Level II tertiary polytrauma care centers. These funds are for necessary upgrades, including equipment upgrades, to make these centers state-of-the-art facilities.

The recent series of articles by the Washington Post on deplorable conditions at the Walter Reed Army hospital's annex make it clear that the American people want those who have served our nation in the military to be treated professionally and with dignity and respect when they return from the battlefield. While the Walter Reed hospital is under the jurisdiction of the U.S. Army and not the Department of Veterans Affairs, there are some vital lessons to be learned from the problems uncovered there. The wars in Iraq and Afghanistan are resulting in large increases in the number of veterans needing health care services and this increase is putting serious pressure on the Department's health care budgets, which might cause health care facilities to make tough choices in providing quality health care and services.

The Department has conducted a Facilities Condition Assessment which identified a total of $5 billion as the universe of projects needed to correct identified deficiencies at existing facilities. The Committee is concerned that budget pressures only exacerbate these deficiencies and therefore includes $550,000,000 for non-recurring facilities maintenance and repairs. These funds are provided to address the most critical of needs such as fire and life safety issues and accreditation problems, and to enhance clinical capabilities to reduce wait times. The Department is directed to provide a report to the Committee on Appropriations within 60 days on a plan for execution of these funds, designated by facility. The report shall include the current backlog of non-recurring maintenance, funding from this appropriation assigned to each item on the list, and future funding needs in each of the next three fiscal years. The Department is to provide a quarterly report detailing the expenditure of these funds.

MEDICAL AND PROSTHETIC RESEARCH

The Committee recommendation includes $35,000,000 for Medical and Prosthetic Research. The Department is directed to provide a report to the Committee on Appropriations within 30 days on how it will use this additional funding to address the most pressing medical and prosthetic research needs arising out of the Global War on Terrorism.

DEPARTMENTAL ADMINISTRATION

GENERAL OPERATING EXPENSES

The Committee recommendation includes $62,000,000 for General Operating Expenses for the Veterans Benefits Administration. The amount provided will enable the Department to add 757 new full-time equivalent personnel to the 6,425 personnel currently working on direct compensation claims. This increase will enable the Department to expeditiously handle claims of veterans returning from Operation Iraqi Freedom/Operation Enduring Freedom. In addition, the Committee recommends that up to $1,250,000 of the amount provided be used for digitization of combat unit records and other records necessary for researching post-traumatic stress disorder events.

INFORMATION TECHNOLOGY SYSTEMS

The Committee recommendation includes $35,000,000 for Information Technology Systems which is to be used for system development upgrades to address OIF/OEF requirements such as a program to screen patients for traumatic brain injury and PTSD.

CONSTRUCTION, MAJOR PROJECTS

The Committee recommendation includes $23,800,000 for Construction, Major Projects. Funding is provided to enable completion of a spinal cord injury center. This project is authorized and fulfills the recommendations of the CARES commission.

CONSTRUCTION, MINOR PROJECTS

The Committee recommendation includes $260,000,000 for Construction, Minor Projects. This funding is to be used for high priority projects that are currently unfunded. The Department is directed to provide a report to the Committee on Appropriations within 60 days on a plan for execution of these funds, designated by facility. The Department is to provide a quarterly report detailing the expenditure of these funds.

CHAPTER 8

DEPARTMENT OF STATE

ADMINISTRATION OF FOREIGN AFFAIRS

DIPLOMATIC AND CONSULAR PROGRAMS

(INCLUDING TRANSFER OF FUNDS)

The Committee recommendation includes $966,954,000 for Diplomatic and Consular Programs (D&CP) relating to Iraq, Afghanistan, ongoing operations in Sudan and public diplomacy, $53,958,000 above the request. Within the total, $790,641,000 is for necessary expenses for the operations of the United States Mission in Iraq, of which $380,789,000 is to stand up new Provincial Reconstruction Teams (PRT's) (including security costs for the stand-alone PRTs that will not be co-located with a brigade combat team or on a forward operating base), $265,827,000 is for ongoing security-related costs of the U.S. Mission, such as armored vehicles, x-ray machines and personal protection equipment necessary to support the guard force and special protective details, $72,505,000 is for logistics support, $47,646,000 is for Mission operations, $15,000,000 is for overhead cover and other physical security measures for facilities, and $8,874,000 is for information technology. Also included is $102,155,000 for worldwide security upgrades, of which $82,155,000 is for additional security for State Department and other U.S. Government personnel operating in Afghanistan, and $20,000,000 is for high threat protection for State Department officials in Sudan. Finally, $24,158,000 is for ongoing D&CP operations, of which $20,000,000 is to expand public diplomacy international information programs to combat violent extremism, $2,000,000 is for the Bureau of Intelligence and Research to augment timely and efficient electronic dissemination of intelligence to diplomatic customers, $1,900,000 is to support increased costs associated with diplomatic efforts in Sudan, and $258,000 is for transfer to the United States Commission on International Religious Freedom.

In addition, the Committee recommendation includes $50,000,000 to establish and maintain a civilian reserve corps. The civilian corps will provide a reserve of police and experts in rule of law, infrastructure, essential services, and civil administration to augment the capability of the Department of State and USAID to address basic security, governance and infrastructure issues. This funding will provide for a management structure within the State Department to recruit, train, equip and maintain the reserve corps, including necessary costs for personnel, information technology, and interagency integration. The recommendation also provides that these funds are available contingent upon authorization.

The Committee appreciates the importance of providing sufficient funding to cover the operational and security requirements of those carrying out the diplomatic and reconstruction mission in Iraq. However, the delay in the submission of material in justification of the request made it extremely difficult to assess the adequacy of the requested amounts. Furthermore, the Committee understands that on February 22, 2007, the Deputy Secretary of State and the Deputy Secretary of Defense finalized a Memorandum of Agreement (MOA) specifying operational requirements, authorities, and responsibilities shared between the U.S. Mission-Iraq and the Multi-National Forces-Iraq. While the Committee welcomes the conclusion of the agreement, this lag in finalizing the MOA effectively held-up critical security funding provided by this Committee on an emergency basis last spring, and potentially limited the ability of the existing Provincial Reconstruction Teams to carry out their mission. This is not an acceptable way to conduct operations.

Therefore, the Committee recommendation includes a proviso withholding from obligation $395,000,000 of the amount provided within Diplomatic and Consular Programs for Iraq operations until the Committee on Appropriations receives and approves a detailed plan for expenditure of the funds available for Iraq operations, including the U.S. Mission's operation requirements, the ongoing operations of the existing Provincial Reconstruction Teams, and the costs of establishing, supporting, and securing the new Provincial Reconstruction Teams. The plan is to be prepared by the Secretary of State and submitted within 60 days after the date of enactment of the Act. The plan should include all funds available in fiscal year 2007 for Iraq operations, including unobligated funds from the Emergency Supplemental Appropriations Act for Defense, the Global War on Terror, and Hurricane Recovery, 2006.

The Committee recommendation does not include the salaries and allowances for new domestic staff positions and the $4,000,000 requested to lease additional space for domestic staff associated with Iraq `surge activities.'

The Committee understands that to fully staff the new Provincial Reconstruction Teams will require the Department of State to recruit specialized technical personnel, such as irrigation specialists, veterinarians, and agribusiness developed experts. In many instances, these personnel will come from other U.S. Government agencies. The Committee intends that a portion of the funds provided be available to reimburse other U.S. Government civilian agencies for the salaries and allowances of their personnel serving in Iraq, including those of contractor employees.

The Committee directs the Department, no later than 45 days after the date of enactment of this Act, to provide a report to the Committee detailing the planned expenditures, by category, of funds available in fiscal year 2007 for public diplomacy activities aimed at combating violent extremism under this heading.

OFFICE OF THE INSPECTOR GENERAL

(INCLUDING TRANSFER OF FUNDS)

The Committee recommendation includes $46,800,000 under this heading, of which $1,300,000 is provided to the Department of State Office of Inspector General for salaries and expenses related to programs in Iraq and $45,500,000 is for transfer to the Special Inspector General for Iraq Reconstruction (SIGIR) for reconstruction oversight. Within the total to be transferred to SIGIR, $35,000,000 is for salaries and expense contract costs for the SIGIR and $10,500,000 is for the forensic audit report required under section 2 of Public Law 109-440.

EDUCATIONAL AND CULTURAL EXCHANGE PROGRAMS

The Committee recommendation includes $20,000,000 for Educational and Cultural Exchange Programs for expanded academic programs and professional and cultural exchanges aimed at combating violent extremism. Within the total, $10,600,000 is for academic programs, $8,200,000 is for professional and cultural exchanges, and $1,200,000 is for costs associated with program operations.

The Committee directs the Department, no later than 45 days after the date of enactment of this Act, to provide a report to the Committee detailing the planned expenditures, by category, of funds available in fiscal year 2007 for combating violent extremism under this heading.

INTERNATIONAL ORGANIZATIONS

CONTRIBUTIONS FOR INTERNATIONAL PEACEKEEPING ACTIVITIES

The Committee recommendation includes $288,000,000 for assessed costs of U.N. peacekeeping operations. Within the total, $184,000,000 is for the U.N. Interim Force in Lebanon (UNIFIL), $16,000,000 is for the U.N. Mission to Timor Leste (UNMIT), and $88,000,000 is for a potential mission in Chad.

The Committee has not included language requested by the Administration under Peacekeeping Operations to transfer funds from voluntary peacekeeping to assessed costs of U.N. Peacekeeping Missions. The Committee urges the Administration to submit a budget amendment if additional funding is required to meet future U.N. mission requirements.

RELATED AGENCY

BROADCASTING BOARD OF GOVERNORS

INTERNATIONAL BROADCASTING OPERATIONS

The recommendation includes $10,000,000 for international broadcasting operations. The additional funds will be used to create a three-hour daily program aimed at significantly expanding the audience reach of Alhurra in the Middle East.

BILATERAL ECONOMIC ASSISTANCE

FUNDS APPROPRIATED TO THE PRESIDENT

UNITED STATES AGENCY FOR INTERNATIONAL DEVELOPMENT

CHILD SURVIVAL AND HEALTH PROGRAMS FUND

The recommendation includes $161,000,000, as requested. Funding will be used to maintain and expand efforts to detect, prevent and control the spread of the avian influenza virus and pre-empt the emergence of a virus capable of causing a global influenza pandemic. These funds will augment the $30,000,000 already available in fiscal year 2007 for a total program level of $191,000,000. Within the total, $161,000,000 is for solidifying gains made in fiscal year 2006 and allowing for expanded application of the core action areas of the U.S. Government's Implementation Plan to the National Strategy for Pandemic Influenza and $40,000,000 is available for new high priority activities, including Pandemic Readiness/Humanitarian Response Planning aimed at high risk countries in South Asia, Africa, Latin America, and the Caribbean.

The Committee directs the Department, no later than 45 days after the date of enactment of this Act, to provide a report to the Committee detailing the planned expenditures, by category, of funds available to United States Agency for International Development and the Department of State in fiscal year 2006 and 2007 for avian influenza.

INTERNATIONAL DISASTER AND FAMINE ASSISTANCE

The Committee recommendation includes $135,000,000 for International Disaster and Famine Assistance, which is $30,000,000 above the request. Within the total, $40,000,000 is to ensure the continued ability to provide humanitarian assistance to 1.9 million internally displaced persons (IDP's) and host communities in the more than 60 IDP camps in Sudan, and $75,000,000 is to meet unanticipated humanitarian assistance needs, as well as to replenish costs incurred as a result of humanitarian crises in Iraq.

The Committee is concerned with growing instability in Chad and the Central African Republic. The Committee requests that the Department of State and USAID consult with the Committee not later than 30 days after the date of enactment of this Act on United States programs to address humanitarian concerns in these countries.

The Committee supports a peaceful resolution to the conflict in northern Uganda and urges the Department of State to work with the rest of the international community to promote progress towards a truly sustainable peace in Uganda using all appropriate diplomatic, logistical, and financial tools available to ensure negotiations between the Government of Uganda and the Lord's Resistance Army (LRA) continue. Any resumption of hostilities would lead to intensified insecurity and further deterioration of the already egregious humanitarian conditions in Uganda, Sudan, Democratic Republic of the Congo, and Central African Republic.

OPERATING EXPENSES OF THE UNITED STATES AGENCY FOR INTERNATIONAL DEVELOPMENT

The Committee recommendation includes $10,700,000 for operating expenses of the United States Agency for International Development (USAID). The additional funds are required to cover the increased security and other operating costs associated with USAID personnel in Afghanistan.

OPERATING EXPENSES OF THE UNITED STATES AGENCY FOR INTERNATIONAL DEVELOPMENT OFFICE OF INSPECTOR GENERAL

The Committee recommendation includes $3,500,000 for operating expenses of the United States Agency for International Development Inspector General, of which $2,000,000 is for the additional expenses associated with oversight of the expanded programs in Afghanistan.

OTHER BILATERAL ECONOMIC ASSISTANCE

ECONOMIC SUPPORT FUND

The Committee recommends a total of $2,953,000,000 for Economic Support Fund (ESF) relating to Iraq, Afghanistan, Lebanon, Liberia, and the Democratic Republic of Congo.

IRAQ

The Committee includes $1,877,000,000 for ESF in Iraq, a reduction of $185,000,000 from the request. Funds provided for Iraq are to be allocated as follows:

Provincial Reconstruction Teams (PRTs).--Within the amount provided for Iraq, $620,000,000 is made available for PRTs, a reduction of $100,000,000 from the request.

The Committee notes that the PRT program has been ongoing for more than one year. Many obstacles remain, such as the unstable security situation; the difficulty of integrating civilian and military personnel; and problems in recruiting and retraining qualified civilian personnel. The tactical shifts detailed in the President's surge announcement of January 10, 2007 include the doubling of PRTs and PRT civilian personnel in Iraq and the integration of PRTs and brigade combat teams (BCTs) in most areas.

Local Governance Program (LGP).--Within the amount made available in ESF for Iraq, $100,000,000, as requested, is provided for LGP. The Committee recognizes the work the United States Agency for International Development has done to build the capacity of local governments to provide essential services.

Community Stabilization Program (CSP).--The Committee notes that the United States Agency for International Development has entered into a competitively awarded Agreement with International Relief and Development (IRD) to implement the CSP. The Committee supports the work CSP does directly with community groups, local government officials, and PRTs in the development and implementation of activities that foster more productive and peaceful communities by offering disincentives to engage in violence. Within the amount provided in ESF for Iraq, $354,000,000 is available for CSP, a reduction of $30,000,000 from the request. This reduction was made without prejudice.

Community Action Program (CAP).--Within the amount provided in ESF for Iraq, $75,000,000 is made available for CAP, an increase of $25,000,000 above the request. The Committee notes that CAP is the only program of its kind to operate outside the `green zone' in Iraq. By working at the community level the CAP program directly engages Iraqis in reconstructing their own communities; creating employment; and building nation-wide grassroots constituency for democracy.

Private Sector Agribusiness Development.--Within the amount provided in ESF for Iraq, $75,000,000, as requested, is provided for Agribusiness Development.

Strengthen Financial Markets.--The Committee recommendation for ESF in Iraq includes $12,500,000, as requested, for expansion of micro-credit to expand capital markets.

Financial Market Development.--Within the amount appropriated in ESF for Iraq, $12,500,000, as requested, is provided for training and financial and technical support.

National Capital Development (NCD).--Within the amount provided in ESF for Iraq, $160,000,000, a reduction of $20,000,000 from the request, is provided for NCD. The Committee recommendation includes $40,000,000 for a training program for 10 key ministries; $12,000,000 for a scholarship program; $8,000,000 for anti-corruption program; $25,000,000 for public management advisors in key ministries; $3,000,000 for self-assessment capacity development; $26,000,000 to support a national training center; $31,000,000 for support to four regional training centers; and $15,000,000 for assistance to Iraqi universities to establish public administration program.

Policy, Subsidy, Legal, Regulatory & Transparency Reforms.--Within the amount provided in ESF for Iraq, $90,000,000, a reduction of $20,000,000, is provided for Policy, Subsidy, Legal, Regulatory & Transparency Reforms. The Committee recommendation includes $35,000,000 for Financial Management Information System (FMIS) and SBA; $35,000,000 is for assistance drafting laws and regulations; and $20,000,000 is for the establishment of an investment promotion agency and WTO activities.

Democracy and Civil Society Activities.--The Committee recommendation provides $388,000,000, a reduction of $40,000,000 from the request for Democracy and Civil Society activities. The Committee directs that the Department of State and the United States Agency for International Development, in consultation with the Committee, submit a spending plan and strategy no later than 45 days after the date of enactment of this Act. The spending plan shall include the specific amounts intended for nongovernmental organizations and the proposed activities. The plan shall also provide a detailed strategy for democracy and civil society activities in Iraq with objectives and benchmarks to measure success.

The Committee is encouraged by the Secretary of State's announcement on February 27, 2007, of a new diplomatic initiative relating to Iraq and its immediate neighbors. The Committee agrees with the stated desire that all governments seize this opportunity to improve relations with Iraq and work for peace and stability in the region. The Committee strongly encourages the Administration to apply this diplomatic initiative to all aspects of U.S. policy in the Middle East.

The Committee notes that the January 2007 National Intelligence Estimate on Iraq concludes that a `bottom-up approach', including working more directly with neighborhood watch groups and establishing grievance committees, could help to reverse Iraq's continued instability. The Community Action Program, the Community Stabilization Program, rule of law, and democracy programs aim to foster such localized developments. However, the Committee recognizes that several ongoing contracts predate the explosion of sectarian violence a year ago. The Committee strongly recommends that the United States Agency for International Development (USAID) and the Department of State evaluate whether current programs adequately reflect the growing inter-sectarian and inter-communal violence. Where appropriate, USAID and the Department of State should strengthen alternative dispute resolution mechanisms between tribal and religious groups.

The Committee is concerned regarding reports of U.S. reconstruction and relief assistance in Iraq not reaching all segments of the Iraq population, particularly minority populations. The Committee has heard reports of villages in the Nineveh Plain region not receiving assistance. Therefore, the Committee directs the Secretary of State to report no later than 45 days after the date of enactment of this Act on the ethnic and geographic distribution of U.S. assistance programs and specifically a report on all U.S. assistance reaching the Nineveh Plain region.

`NEW DIPLOMATIC OFFENSIVE' FOR IRAQ AND THE REGION

Along with the redeployment of United States Armed Forces provided for in section 1904, the Committee expects the President to pursue the diplomatic strategy, entitled `The External Approach: Building an International Consensus,' recommended by the Iraq Study Group in its December 2006 report on Iraq. This strategy calls upon the United States to pursue a comprehensive `New Diplomatic Offensive' designed to build an international consensus and support structure for stability in Iraq and the surrounding region. The `New Diplomatic Offensive' is to engage all of Iraq's neighbors, and address all the `key issues' in the Middle East, including not just the situation in Iraq, but also in Lebanon, Syria, and Iran, as well as the Israel-Palestine conflict. Importantly, as part of the `New Diplomatic Offensive', the United States is to initiate a constructive diplomatic engagement with Iran and Syria.

The Committee supports this recommendation of the Iraq Study Group and urges the President to pursue it aggressively.

AFGHANISTAN

The Committee recommends funding for Afghanistan programs at $743,000,000, which is $90,000,000 above the request. The Committee notes that the increase is provided to PRTs and rural development. Funds are appropriated as follows:

The Committee is concerned that Taliban and Al Qaeda backed insurgents have stepped up the frequency and intensity of attacks in Afghanistan. Recent years have brought record harvests of opium poppies, proceeds of which finance terrorist groups in Pakistan. The Committee is increasing support for PRTs and for rural development in Afghanistan as two mechanisms for extending the reach of government and providing assistance in the provinces. While the Committee understands that expanding the network of roads is a central component of the United States strategy for reconstruction and stabilization, the Committee believes there should be greater investment by other donors in infrastructure programs.

LEBANON

The Committee recommendation includes $300,000,000 in ESF for Lebanon, of which $250,000,000 is for cash transfer assistance, as requested. The Committee is concerned about the recent trend of providing foreign assistance through budgetary support or cash transfers and believes that such assistance should be used infrequently and with extraordinary measures to ensure accountability and impact. Such concerns are exacerbated with respect to Lebanon due to the presence of members of Hezbollah in the government of Lebanon. The Committee understands that cash transfer assistance for Lebanon is to be used for debt relief. The Committee therefore strongly recommends that cash transfer assistance for Lebanon be used to directly pay creditors rather than to provide direct budget support to the Government of Lebanon.

The Committee intends that within the funds made available under ESF for FY 2007 (including funds made available pursuant to P.L. 110-5) that not less than $10,000,000 should be made available for scholarships and direct support of American educational institutions in Lebanon.

LIBERIA

The Committee recommends $5,000,000 in ESF for Liberia to support executive protection.

DEMOCRATIC REPUBLIC OF CONGO

The Committee recommendation includes $15,000,000 for ESF programs within the Democratic Republic of Congo to help secure the peace, to expand government capacity, and to promote disarmament, demobilization, and reintegration (DDR).

SIERRA LEONE

The Committee recommendation includes an additional $3,000,000 under this heading to support operations of the Special Court for Sierra Leone. These funds are in addition to the $13,000,000 available in fiscal year 2007 for the Court.

ASSISTANCE FOR EASTERN EUROPE AND THE BALTIC STATES

The recommendation includes $239,000,000 for Assistance for Eastern Europe and the Baltic States, a reduction of $40,000,000 from the request. The Committee directs that not later than 45 days after the date of enactment of this Act, the Department of State shall report on the outcome of the Kosovo Donors Conference. This report should include a comprehensive list of the amount of funds pledged by the United States as well as other donor nations and organizations. The Committee notes that any such support pledged by the United States is subject to the availability and approval of funds.

DEPARTMENT OF STATE

INTERNATIONAL NARCOTICS CONTROL AND LAW ENFORCEMENT

The Committee recommendation provides $334,500,000 for International Narcotics Control and Law Enforcement Activities in Iraq and Lebanon. Within the total, $180,000,000 is for criminal justice development and rule of law programs in Iraq, $94,500,000 is for programs in Afghanistan and $60,000,000 is to support the Internal Security Forces (ISF) in Lebanon.

In order to respond to the rapidly evolving situation in Iraq, the Committee is providing $180,000,000 to help the Iraqis develop the institutional and societal frameworks necessary for rule of law to take hold, while simultaneously addressing the immediate problems of the Iraqi criminal justice system. The Committee supports the goal of creating a criminal justice system that is fair, efficient, and effective to provide the Iraqi people with an alternative to other more violent means to resolve their disputes. To these ends the Committee recommendation includes:

Corrections Advisors and Prison Construction.--Within the amount provided not more than $32,500,000 is made available for employment costs for not more than 80 correctional advisors and $17,900,000 is provided to design and construct facilities to expand the bed capacity of the Iraq Corrections Service (ICS).

Courts, the Judiciary, and Public Prosecutors.--The Committee notes that judges, court-staff, witnesses, and attorneys, all face a serious threat of physical harm by participation in the legal process and that justice will not be achieved without freedom from fear of retribution. Within the amount provided the Committee has made available not more than $58,000,000, as requested, for bolstering court and judicial security, providing technical assistance to judges, prosecutors and court investigators, and assisting court personnel in rules, processes and administrative practices.

Criminal Justice Integration.--Within the amount provided not more than $25,000,000, as requested, may be available to support the integration of the justice system (police, courts, and prisons) in additional locations outside of Baghdad.

Anticorruption/Public Integrity Program and Civil Society.--Within the amount provided not more than $21,000,000, as requested, is for anticorruption efforts.

Major Crimes Taskforce.--Within the funds provided, not more than $11,000,000, as requested, may be made available to build Iraqi capacity to investigate insurgent and other serious criminal activity.

Rule of Law/Outreach.--Within the amount provided not more than $5,600,000, as requested, may be available to promote access to the criminal justice system by funding Resident Legal Advisors (RLAs) and Rule of Law Advisors (RoLAs) to Provincial Reconstruction Teams (PRTs).

Legal Framework.--Within the amount provided, not more than $2,000,000, as requested, is available to support Iraqi legislative initiatives to strengthen the judiciary and reform the criminal procedure and penal codes.

Administrative Expenses.--Within the funds provided, not more than $7,000,000, as requested, is recommended for administrative expenses.

AFGHANISTAN

The recommendation includes $94,500,000 to accelerate and expand programs to strengthen counternarcotics efforts, to improve the training of the Afghan police, and to advance the development of institutional capacity and professionalism of the permanent justice institutions. No additional funding was requested in this account for these activities. However the Committee believes they are an essential component of any strategy for stabilizing and strengthening the Government in Afghanistan. The Committee directs the Department, no later than 45 days after the date of enactment of this Act, to provide a report to the Committee detailing the planned expenditures, by category, of all funds available in fiscal year 2007 for INCLE activities in Afghanistan.

LEBANON

The Committee provides a total of $60,000,000 in non-lethal assistance for Lebanon, of which $36,500,000 is for training of the Internal Security Forces; $19,500,000 is for equipment including individual supplies for 9,000 new recruits, 300 unarmored SUVs, computers, and radio gear; and $4,000,000 is to refurbish 35 police stations, 4 police academies and a command and control center.

MIGRATION AND REFUGEE ASSISTANCE

The recommendation includes $111,500,000 for Migration and Refugee Assistance, which is $40,000,000 above the request. The Committee recommendation includes $15,000,000 requested to meet the needs of Iraqi refugees. However the Committee understands that additional funds may be needed if the influx of Iraqi refugees in neighboring countries increases. The Committee provides $96,500,000 in additional funds to meet unforeseen requirements. The Committee is becoming increasingly concerned about the slow return of refugees to Burundi and the DRC and has provided additional funding to expedite the efforts. The Committee recognizes the growing humanitarian needs of Palestinian refugees in the West Bank and Gaza. Furthermore, the Committee recognizes UNRWA will likely continue as a principle channel of support to Palestinian refugees. However, the Committee is concerned by the financial accounting deficiencies reported in UNRWA's 2005 biennium audit conducted by the UN Board of Auditors and asks the Secretary to report on the corrective measures taken by UNRWA.

UNITED STATES EMERGENCY REFUGEE AND MIGRATION ASSISTANCE FUND

The recommendation includes $35,000,000 for Emergency Refugee and Migration Assistance to address unanticipated emergency humanitarian needs in places such as Somalia, Chad, Sri Lanka, and Iraq. The additional funding is also needed to support contingency planning to address increased Darfur refugee outflows from Chad.

NONPROLIFERATION, ANTITERRORISM, DEMINING AND RELATED PROGRAMS

The Committee recommendation includes $87,500,000 for Nonproliferation, Anti-Terrorism, Demining and Related Programs. This level is $60,000,000 above the request. Within the total, $5,500,000 is to support a terrorist interdiction program in Lebanon, $15,000,000 is to continue in-country support for the protection of Afghan President Karzai, $7,000,000 is for humanitarian de-mining in Iraq, and $60,000,000 is for border security activities in Jordan.

DEPARTMENT OF THE TREASURY

INTERNATIONAL AFFAIRS TECHNICAL ASSISTANCE

The recommendation includes $2,750,000 for International Affairs Technical Assistance. These funds are to continue the Department of the Treasury's engagement with the Government of Iraq on matters related to banking and budget execution.

MILITARY ASSISTANCE

FUNDS APPROPRIATED TO THE PRESIDENT

FOREIGN MILITARY FINANCING PROGRAM

The Committee recommends $260,000,000 for Foreign Military Financing Program. The recommendation includes $220,000,000, as requested, for Lebanon and $40,000,000 for Jordan.

PEACEKEEPING OPERATIONS

The Committee recommends $225,000,000 for Peacekeeping Operations. This level is $53,000,000 below the request. Within the total, the Committee provides $40,000,000 to assist in deploying a regional stabilization and peacekeeping force in Somalia as requested and $150,000,000 as requested for the Africa Union Mission in Sudan (AMIS) for construction, operation and maintenance of base camps, strategic airlift, training and equipping of AMIS troops, and maintenance of vehicles and communications equipment. The Committee recommendation also includes $35,000,000 in funding for security sector reform in Liberia. The Committee's recommendation includes the $88,000,000 requested for a possible peacekeeping mission in Chad under the Contributions for International Peacekeeping Activities (CIPA) account.

The Committee does not include the requested transfer authority to allow funds to be transferred between the voluntary Peacekeeping Operations (PKO) account and the CIPA account. The Committee notes that the FY 2008 budget does not include a request for AMIS. The Committee is concerned that the Administration has not adequately planned for future peacekeeping activities in Sudan/Darfur in FY 2008 and urges the Secretary of State to work with the Office of Management and Budget to submit a budget amendment for FY 2008 addressing these urgent needs.

The Committee recommends that the African Union Peace and Security Council and the African Union Mission in Sudan (AMIS) Field Commander interpret the AMIS mandate fully and robustly to ensure not only that monitoring and reporting security incidents occur, but that AMIS works proactively to secure the areas in which it is deployed and ensures that civilians and humanitarian workers are protected. The Committee directs the Department of State to report to the Committee on efforts made towards this end. Included in this report shall be a clear timeline for the transition to a hybrid force and deployment of a full and robust peacekeeping mission under United Nations Security Council command and control. This report shall include specific benchmarks for measuring progress towards this end.

GENERAL PROVISIONS--THIS CHAPTER

Sec. 1801. The Committee recommendation amends the authority of the Special Inspector General for Iraq Reconstruction to include funds appropriated for Iraq reconstruction in fiscal years 2006, 2007 or 2008 in calculating the termination date of the SIGIR. The Committee intends that funds appropriated in this Act for Iraq reconstruction should be under the oversight jurisdiction of the SIGIR.

Sec. 1802. The Committee recommendation includes a general provision setting forth the limitations outlined below on assistance for Lebanon:

(a) The Committee recommendation directs that no funds provided in this Act for cash transfer assistance to Lebanon be made available for obligation until the Secretary of State reports to the Committees on Appropriations on the Memorandum of Agreement between the United States and the Government of Lebanon on Lebanon's economic reform plan and the benchmarks upon which cash transfer assistance will be conditioned. The Committee further directs the Secretary to report on the procedures in place to ensure that no funds are provided to any individuals or organizations that have any known links to terrorist organizations including Hezbollah, and mechanisms to monitor the use of the appropriated funds.

(b) The recommendation directs that no military assistance or international narcotics control and law enforcement assistance be made available for obligation until the Secretary of State reports to the Committees on Appropriations on the vetting procedures in place to determine eligibility to participate in U.S. training and assistance programs funded under these accounts.

(c) The Committee is concerned that the government of Lebanon has not fully implemented Section 14 of UN Security Council Resolution 1701 and is concerned about reports of continuing arms shipments from Syria into Lebanon. Therefore, the Committee requests a report from the Secretary of State no later than 45 days after enactment of this Act detailing what steps the Government of Lebanon and UNIFIL have taken to implement the actions outlined in the resolution.

CHAPTER 9

GENERAL PROVISIONS--THIS TITLE

Sec. 1901. The Committee recommendation includes a provision requiring the Defense Department to abide by its current policy, requiring the chief of the military department concerned to determine that a unit is `fully mission capable' before it is deployed to Iraq. The President may waive this provision by submitting a report to Congress detailing the particular reason or reasons why the unit's deployment is in the interests of national security despite the chief of the military department's assessment that the unit is not fully mission capable.

Sec. 1902. The Committee recommendation includes a provision requiring the Defense Department to abide by its current policy and avoid extending the deployment of units in Iraq in excess of 365 days for the Army and 210 days for the Marines. The President may waive this provision by submitting a report to Congress detailing the particular reason or reasons why the unit's extended deployment is in the interests of national security.

Sec. 1903. The Committee recommendation includes a provision requiring the Defense Department to abide by its current policy and avoid sending units back into Iraq before troops get the required `time out of the combat zone' and training time. The President may waive this provision by submitting a report to Congress detailing the particular reason or reasons why the unit's early redeployment to Iraq is in the interests of national security.

Sec. 1904. The Committee recommendation includes a provision that sets the conditions and a specific timetable for ending U.S. involvement in the Iraqi Civil War. By July 1, 2007, the President has to determine and report to Congress whether Iraq is making substantial progress on specific military, security, economic, and political benchmarks. If the President does not make the determination, U.S. troops must be redeployed out of Iraq by the end of December 2007.

By October 1, 2007, the President must certify that Iraq has met certain concrete and verifiable objectives to reform its political and economic system. If the President does not make this certification, U.S. troops must be redeployed by the end of March 2008, consistent with the timeline of the Iraq Study Group. In addition, the bill fences 50 percent of certain Iraqi reconstruction funds provided in this bill until the certification is made. If the President is able to make the required determinations and certification on time, the deadline for redeploying troops out of Iraq is the end of August 2008.

The provision allows funds to be used to plan and execute a safe and orderly transition from the military's current combat mission to a significantly reduced role. After troops have been redeployed, their military role in Iraq would be limited to protecting American diplomatic facilities and American citizens, including members of the U.S. armed forces; serving in roles consistent with customary diplomatic positions; engaging in targeted special actions limited in duration and scope to killing or capturing members of al-Qaeda and other terrorist organizations with global reach; and training members of the Iraqi Security Forces.

Sec. 1905. Coordinator for Iraq Assistance- The Committee directs that the President appoint a Coordinator for Iraq Assistance within 30 days of the date of enactment of this Act. The Committee is concerned with the inability of executive branch agencies in Iraq to develop and implement an overall strategy for political, economic and military assistance. The new coordinator is intended to bring a unity of effort, coordination of assistance programs and policy coherence among all agencies of the United States Government implementing assistance programs in Iraq. The Committee expects that the new coordinator will report directly to the President on the status and progress of U.S. assistance programs in Iraq as well as monitor the allocation and expenditure of Iraqi Government resources for reconstruction programs.

The Committee intends that the Coordinator of Iraq Assistance will act as the principal point of contact on the overall reconstruction efforts; coordinate with other donors and international organizations providing assistance to Iraq; ensure adequate management and accountability of U.S. assistance programs for Iraq; and resolve policy and program disputes among United States Government agencies implementing assistance programs in Iraq.

Sec. 1906. The Committee recommendation includes a provision that prohibits the use of funds in this or any other Act to close Walter Reed Army Medical Center.

Sec. 1907. The Committee recommendation includes a Congressional pledge to fully support members of the U.S. Armed Forces in harm's way.

Sec. 1908. The Committee recommendation includes a sense of Congress regarding the President as the Commander in Chief and Congressional power to declare war.

Sec. 1909. The Committee recommendation includes a sense of Congress regarding the conduct of the war in Iraq by U.S. commanders.

TITLE II--ADDITIONAL HURRICANE DISASTER RELIEF AND RECOVERY

Funding in this title provides continuing support for Hurricane Disaster Relief and Recovery. One of the groups that have been most adversely affected are the children in the Gulf Coast region. The committee recommends providing additional funding of $4,310,000,000 to the Disaster Relief Fund. This will help to continue to address the needs of the estimated 372,000 students affected by Hurricane Katrina. The Disaster Relief Fund includes support for public assistance grants to repair and reconstruct school buildings, replace contents in schools including books and desks, and provide portable classrooms. A provision included in this legislation mandates that the full cost of the assistance already provided to affected States is borne by the federal government.

The supplemental provides $30,000,000 in emergency assistance for the public elementary and secondary schools most severely impacted by the 2005 Gulf Coast hurricanes in order to help them recruit and retain high quality classroom teachers for the children returning to these communities.

The supplemental also extends the availability of $550,000,000 in emergency funds provided for the title XX Social Services Block Grant in 2006 that will otherwise expire on September 30, 2007. A portion of these funds will be used to provide behavioral health services, foster care, protective, and day care services for children.

CHAPTER 1

DEPARTMENT OF AGRICULTURE

GENERAL PROVISIONS

Sec. 2101. Language regarding livestock is included.

Sec. 2102. Language regarding irrigated crops is included.

Sec. 2103. Language regarding citrus is included.

CHAPTER 2

DEPARTMENT OF COMMERCE

NATIONAL OCEANIC AND ATMOSPHERIC ADMINISTRATION

OPERATIONS, RESEARCH, AND FACILITIES

The recommendation provides $120,000,000 to the National Oceanic and Atmospheric Administration (NOAA) for disaster recovery from the effects of Hurricane Katrina on fishing industries in the Gulf Region. Within the amount provided, funding should be made available to the NOAA's Office of Coast Survey and the Office of Response and Restoration to conduct scanning and mapping of traditional fishing grounds as well as to provide marine debris removal. Further, disaster relief funding is to be made available for fishermen, fish processors, and related businesses serving the fishing industry, including for personal assistance, vessel recovery, fishing infrastructure, or other disaster associated needs. The Committee directs the Department of Commerce to notify the Appropriations Committee on the allocation of funds provided under this heading for the above activities no later than 15 days prior to obligation of such funds.

NATIONAL AERONAUTICS AND SPACE ADMINISTRATION

EXPLORATION CAPABILITIES

The recommendation also provides $35,000,000 for risk mitigation projects at the Stennis facility.

GENERAL PROVISION--THIS CHAPTER

The recommendation includes transfer language to pay back $47,600,000 loaned from Shuttle/International Space Station (ISS) programs which have already been obligated.

CHAPTER 3

DEPARTMENT OF DEFENSE--CIVIL

DEPARTMENT OF THE ARMY

CORPS OF ENGINEERS--CIVIL

CONSTRUCTION

Funds totaling $37,080,000 are provided to reduce the risk of hurricane and storm damage to the Mississippi Coastal area as outlined in the Mississippi Coastal Improvements Project, Hancock, Harrison, and Jackson Counties, Mississippi, Interim Report dated December 31, 2006. The funds provided are for the project elements that contribute most directly to hurricane and storm damage reduction in the three counties included in the study area. Funds provided under this heading are subject to authorization.

FLOOD CONTROL AND COASTAL EMERGENCIES

Funds totaling $1,300,000,000 are provided to continue repairs and accelerate completion of flood and storm damage reduction projects in the greater New Orleans area. These projects are to be funded at full Federal expense.

Public Law 109-148, the third emergency supplemental appropriations act of 2006, provided funds to repair and restore hurricane damaged projects and to accelerate completion of the New Orleans area flood and storm damage reduction projects to the level of protection that was authorized prior to Hurricane Katrina. However, the magnitude of the effort required to provide the pre-Katrina authorized level of protection is now recognized to be much greater than originally anticipated, and the funding provided previously is insufficient to complete the work.

The funds in this chapter are provided to achieve the pre-Katrina authorized level of protection for the West Bank and Vicinity project as well as make progress toward providing pre-Katrina authorized protection for the remaining portions of the Lake Pontchartrain and Vicinity project.

GENERAL PROVISION--THIS CHAPTER

Additionally, a provision is included to allow the expenditure of up to $650,000,000 of funding that remains unobligated from the fourth emergency supplemental appropriations act of 2006 (Public Law 109-234) to provide additional funding for flood protection on the Inner Harbor Navigation Canal. This provision, in addition to the amount originally provided in the fourth emergency supplemental, will provide the full funding necessary to complete the authorized protection for the Lake Pontchartrain and Vicinity project.

CHAPTER 4

SMALL BUSINESS ADMINISTRATION

DISASTER LOANS PROGRAM ACCOUNT

The Committee recommends $25,069,000, for administrative expenses for the Disaster Loan Program Account. This amount will bring the total for administrative expenses for this account to $140,000,000 for fiscal year 2007, which is the amount the Administrator of the Small Business Administration (SBA) has estimated as needed in a letter to the Committee.

The Committee is supportive of ensuring that the Disaster Loan Program has sufficient funds to administer loans related to recent disasters, including hurricanes Katrina, Rita, and Wilma. However, the Committee continues to be concerned about the accuracy of estimates it receives from SBA. The Committee expects SBA to keep the Committee fully informed on how actual obligations compare to estimates, as well as provide to the Committee detailed explanations for significant variances from the estimates.

CHAPTER 5

DEPARTMENT OF HOMELAND SECURITY

FEDERAL EMERGENCY MANAGEMENT AGENCY

DISASTER RELIEF

(INCLUDING TRANSFER OF FUNDS)

The Committee recommends an additional $4,310,000,000 for `Disaster Relief'. This includes $3,400,000,000 requested by the President plus $910,000,000 estimated by FEMA as the current State and local share of certain disaster assistance that is waived by Sec. 2501.

The Committee continues to be concerned with FEMA's ability to manage resources in a manner that maximizes its ability to effectively and efficiently deal with disasters. One aspect of particular concern is how FEMA makes projections of funding needed in response to any given disaster or to meet future disasters. A recent Government Accountability Office (GAO) report raised concerns about FEMA's ability to manage its day-to-day resources and the lack of information on how FEMA's resources are aligned with its operations. As a follow-up to this report, the Committee requests that within six months of enactment GAO review how FEMA develops its estimates of the funds needed to respond to any given disaster. Such review should include how FEMA makes initial estimates, how FEMA refines those estimates within the first few months of a disaster, and how closely FEMA's estimates predict actual costs. The review should also include additional analysis and recommendations regarding FEMA's ability to manage disaster-related resources in a manner that maximizes effective execution of its mission. In addition, the Committee provides that $4,000,000 be transferred to the Inspector General to increase oversight of Katrina expenditures and eliminate waste, fraud and abuse.

OFFICE OF THE FEDERAL COORDINATOR FOR GULF COAST REBUILDING

On November 1, 2005, the White House announced the appointment of a Gulf Coast Coordinator to `serve as the Administration's primary point of contact with State and local governments, the private sector, and community leaders on long-term recovery and rebuilding plans . . . work with Congress and Federal departments and agencies to provide effective, integrated, and fiscally responsible support for Gulf Coast recovery . . . and be responsible for developing specific goals and coordinating policies and programs for mid-term to long-term Federal recovery and rebuilding efforts . . .'

To date, the Office of the Federal Coordinator has not produced goals, policies, or programs that this Committee can act on. The federal response remains disjointed, with federal agencies providing conflicting information to States and localities. The coordination between FEMA and HUD has been particularly weak, with over 90,000 people remaining in FEMA manufactured housing and virtually no `effective' or `integrated' effort to transition them to HUD-supported housing.

The Office of the Federal Coordinator is directed to fulfill its obligations to the Gulf Coast by developing a long-term recovery and rebuilding plan detailing goals, policies, and programs necessary for success in the Gulf Coast. The plan should clearly lay out roles and responsibilities for each federal agency involved in the recovery and rebuilding process, and must be coordinated with all appropriate local and state entities. The Office of the Federal Coordinator is directed to provide monthly reports detailing activities and negotiations in which it is involved with affected states.

GENERAL PROVISIONS--THIS CHAPTER

The Committee includes a provision eliminating the State and local match requirement for certain federal assistance provided prior to enactment through Title IV of the Stafford Act in response to Hurricanes Katrina, Wilma, Dennis, and Rita in Louisiana, Mississippi, Florida, and Texas.

The Committee includes a provision allowing FEMA to forgive Community Disaster Loans that were issued in response to Hurricane Katrina. Community Disaster Loans are used by local governments that have lost their revenue base due to a disaster to provide essential services after the disaster. Prior to Hurricane Katrina, all such loans were able to be forgiven.

The Committee includes a provision that allows FEMA to continue to pay for utility costs for those leases negotiated by State and local governments on FEMA's behalf.

CHAPTER 6

DEPARTMENT OF HEALTH AND HUMAN SERVICES

ADMINISTRATION FOR CHILDREN AND FAMILIES

SOCIAL SERVICES BLOCK GRANT

The Committee recommends extending until September 30, 2008, the availability of emergency title XX Social Services Block Grant funds provided to the Gulf Coast States affected by the hurricanes of 2005 under the Department of Defense, Emergency Supplemental Appropriations to Address Hurricanes in the Gulf of Mexico, and Pandemic Influenza Act, 2006 that will otherwise expire on September 30, 2007.

DEPARTMENT OF EDUCATION

INNOVATION AND IMPROVEMENT

The Committee recommends $30,000,000 for emergency assistance to Louisiana, Mississippi, and Alabama to assist local educational agencies in rebuilding the capacity of public schools that were forced to suspend operations for 30 days or more due to Hurricane Katrina or Hurricane Rita. These funds will be used for recruitment and retention incentives for new and current teachers, school leaders, and other school personnel, and for other activities to build the capacity of such schools. The Committee expects that local educational agencies receiving such funds to assist educators with costs associated with relocation and housing will accord a priority to educators with a prior connection to the State or who previously resided or worked in the area served by the local educational agency. In addition, the Committee expects that public schools receiving emergency assistance shall be (1) open to all students, including students with disabilities and English language learners, and (2) in compliance with all applicable civil rights laws, and state and local health and safety laws. The Committee requests that the Department of Education consult with the House Committee on Education and Labor and the Committee on Appropriations in developing program guidance for the use of this emergency assistance, including determining the system of recruitment incentives (including performance pay, relocation, and housing).

HURRICANE EDUCATION RECOVERY

PROGRAMS TO RESTART SCHOOL OPERATIONS

The Committee includes language to provide flexibility to eligible States and local educational agencies in the use of emergency aid to restart school operations appropriated in Public Law 109-148. This language allows such emergency aid to be used for recruitment and retention incentives for new and current teachers, school leaders, and other school personnel, and for other activities to build the capacity of schools impacted by the 2005 Gulf Coast hurricanes.

HIGHER EDUCATION

The Committee recommends $30,000,000 for emergency assistance to institutions of higher education that were forced to suspend operations for 30 days or more to help defray expenses incurred as a result of the 2005 Gulf Coast hurricanes. The Committee requests that the Department of Education brief the House and Senate Committees on Appropriations not later than five days before the announcement of the availability of these funds.

GENERAL PROVISION--THIS CHAPTER

Sec. 2601. The Committee recommends granting the Secretary of Education authority to continue to waive certain regulatory requirements with respect to the use of funds for restarting school operations in States affected by Hurricanes Katrina and Rita.

CHAPTER 7

DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

PUBLIC AND INDIAN HOUSING

TENANT-BASED RENTAL ASSISTANCE

The Committee recommends the extension of the Disaster Voucher Program to December 31, 2007.

Hurricane-impacted PHAs--The Committee also includes a provision in Title IV which clarifies, consistent with Congressional intent, how HUD will implement the Section 8 Tenant-Based Voucher funding formula with regard to the Public Housing Authorities affected by hurricanes in 2004 and 2005.

OFFICE OF INSPECTOR GENERAL

The Committee provides an additional $10,240,000 for the Office of the Inspector General in order to conduct appropriate oversight of the resources provided for the recovery of Gulf Coast regions affected by Hurricanes Katrina and Rita.

TITLE III--AGRICULTURAL ASSISTANCE

Sec. 3101. The Committee includes language regarding Crop Disaster Assistance providing financial assistance to producers on a farm who incurred qualifying quantity or quality losses for a 2005, 2006 or 2007 crop due to damaging weather or any related condition. The Committee does not intend for this to be an ongoing program and directs the Secretary to make payments to all eligible producers on a farm for a crop under this section no later than September 30, 2008.

Sec. 3102. The Committee includes language regarding livestock assistance providing financial assistance through the Livestock Compensation Program and the Livestock Indemnity Program to provide compensation for livestock losses and to make livestock indemnity payments to producers on farms that have incurred livestock losses during calendar years 2005, 2006 or 2007 before the date of the enactment of this Act. The Committee does not intend for this to be an ongoing program and directs the Secretary to provide compensation for all eligible livestock losses or all livestock indemnity payments to eligible producers on farms under this section no later than September 30, 2008.

Sec. 3106. The Committee includes provisions regarding administration of the forgoing sections.

Sec. 3107. The Committee includes language relating to the National Dairy Market Loss Payment program.

Sec. 3108. The Committee includes language relating to the peanut storage costs program.

Sec. 3109. The Committee includes language relating to aquaculture losses.

Sec. 3110. The Committee designates the funds made available in this title as an emergency.

TITLE IV--OTHER MATTERS

CHAPTER 1

DEPARTMENT OF AGRICULTURE

OFFICE OF THE SECRETARY

The Committee is aware that the State of Indiana has recently entered into a contract to privatize certain operations of the Food Stamp Program. It is the Committee's understanding that USDA approved the contract in December 2006 without a clear understanding of the details of the program, including its implementation, effect on state employees, daily operation of the program or even whether the program complied with federal law. In February 2007, USDA sent a letter to the State of Indiana requesting additional details about the program, with only weeks to go before the initial transfer to private contractors of about 70 percent of state employees working on the Food Stamp Program; this had already been scheduled to occur on March 19, 2007. Therefore, the Committee directs the Secretary to perform comprehensive oversight of the program. It further directs the Secretary to provide the Committee with quarterly reports beginning 30 days after passage of this bill on this contract, including the effects on enrollment, program access, error rates, and spending on administrative expenses. The Committee directs the Secretary to be prepared to take appropriate administrative action if performance standards as stated in the contract are not met.

FARM SERVICE AGENCY

SALARIES AND EXPENSES

The Committee makes available $48,000,000 for stabilizing the payment delivery systems of the Farm Service Agency.

The Committee directs the Secretary to provide a monthly update on the progress of this project, including usage of funds.

GENERAL PROVISIONS

Sec. 4101. Language is included regarding the Food and Drug Administration.

Sec. 4102. The Committee includes language relating to meat and poultry inspection.

CHAPTER 2

DEPARTMENT OF COMMERCE

NATIONAL OCEANIC AND ATMOSPHERIC ADMINISTRATION

OPERATIONS, RESEARCH, AND FACILITIES

The recommendation provides $60,400,000 to the National Oceanic and Atmospheric Administration to provide disaster relief for those affected along the coasts of California and Oregon by the 2006 salmon fishery disaster in the Klamath River. This disaster has all but eliminated the commercial salmon fishing season for fishermen, and has had a devastating economic impact on surrounding coastal areas. The recommendation provides funds through the National Marine Fisheries Service to make disaster aid available to salmon fishermen, tribes, and related businesses affected by this fishery failure.

CHAPTER 3

Sec. 4301. The Committee recommends language to amend the Help America Vote Act of 2002.

CHAPTER 4

DEPARTMENT OF HOMELAND SECURITY

GENERAL PROVISIONS

(INCLUDING RESCISSION OF FUNDS)

The Committee includes a provision rescinding $89,800,000 that would have lapsed in fiscal year 2006 if it were not for a provision in the 2007 Appropriations Act allowing it to remain available through fiscal year 2007. The Department of Homeland Security has not provided plans for spending this funding to the Committee. The Secretary shall report to the Committees on Appropriations of the Senate and the House of Representatives within fifteen days after enactment of this Act on the proposed distribution of the rescission of funds prior to its implementation. This report should specifically list the respective amount proposed to be rescinded by agency and appropriations account, and explain the original purpose of the appropriation and the reason why such funds are available.

The Committee includes a provision extending until the end of fiscal year 2007 two provisos contained in the fiscal year 2006 Salaries and Expenses appropriation for Customs and Border Protection that relate to Border Patrol checkpoints in the Tucson sector.

The Committee includes a provision tightening Coast Guard procurement practices. Numerous studies, including one by the Defense Acquisition University, have recommended changes to Coast Guard procurement procedures and contracting practices in order to control costs and procure equipment that works. The most recent failure in procurement resulted in eight Coast Guard cutters that are currently grounded due to hull buckling problems. In order to ensure that Coast Guard quickly reforms its major procurement systems, the Committee has included bill language mandating: technical reviews of design and design changes; independent cost estimates of major changes; and Coast Guard maintaining technical warrant holder equivalent authority and measuring contractor performance on all work performed. In addition, the provision requires a robust expenditure plan that is reviewed by the Government Accountability Office for Coast Guard's Deepwater program before any 2007 Deepwater funding is obligated.

The Committee includes a provision limiting the use of lead system integrator contracts, similar to requirements in law for the Department of Defense.

CHAPTER 5

DEPARTMENT OF THE INTERIOR

BUREAU OF LAND MANAGEMENT

WILDLAND FIRE MANAGEMENT

The recommendation includes an additional $100,000,000 for wildland fire management for emergency wildland fire suppression activities of the Department of the Interior. These funds are available if funds previously provided for wildland fire suppression will be exhausted imminently and the Secretary of the Interior notifies the House and Senate Committees on Appropriations in writing of the need for these additional funds. In addition, the Committee directs that wildfire suppression cost containment measures continue to be implemented, and the Secretary of the Interior and the Secretary of Agriculture shall submit a joint report to the Committees on Appropriations of the Senate and the House of Representatives on such cost containment measures by December 31, 2007.

UNITED STATES FISH AND WILDLIFE SERVICE

RESOURCE MANAGEMENT

The recommendation provides an additional $7,398,000 for resource management for the detection of highly pathogenic avian influenza in wild birds, including the investigation of morbidity and mortality events, targeted surveillance in live wild birds, and targeted surveillance in hunter-taken birds.

NATIONAL PARK SERVICE

OPERATION OF THE NATIONAL PARK SYSTEM

The recommendation provides an additional $525,000 for operation of the national park system for the detection of highly pathogenic avian influenza in wild birds, including the investigation of morbidity and mortality events.

UNITED STATES GEOLOGICAL SURVEY

SURVEYS, INVESTIGATIONS, AND RESEARCH

The recommendation provides an additional $5,270,000 for survey, investigations and research for the detection of highly pathogenic avian influenza in wild birds, including the investigation of morbidity and mortality events.

DEPARTMENT OF AGRICULTURE

FOREST SERVICE

WILDLAND FIRE MANAGEMENT

The recommendation includes an additional $400,000,000 for wildland fire management for emergency wildland fire suppression activities. These funds are only available if funds provided previously for wildland fire suppression will be exhausted imminently and the Secretary of Agriculture notifies the House and Senate Committees on Appropriations in writing of the need for these additional funds. The Committee directs that wildfire suppression cost containment measures must continue to be implemented and the Secretary of Agriculture and the Secretary of the Interior shall submit a joint report to the Committees on Appropriations of the Senate and the House of Representatives on such cost containment measures by December 31, 2007. In addition, the Secretary of Agriculture is directed to continue the independent cost-control review panel process to examine and report on fire suppression costs for individual wildfire incidents that exceed $10,000,000 in cost.

GENERAL PROVISIONS--THIS CHAPTER

Sec. 4501. The recommendation includes one-time funding of not to exceed $400,000,000 for the Department of Agriculture to make payments in a manner and in amounts similar to those made in 2006 under the Secure Rural Schools and Community Self-Determination Act of 2000.

Section 4502 is a technical correction to the Bureau of Indian Affairs language in P.L. 110-5 so the Bureau may pay certain contract support costs.

(INCLUDING TRANSFER OF FUNDS)

Section 4503 is a technical correction to P.L. 110-5 to allow the Indian Health Service to pay certain contract support costs and to allow the Service to transfer up to $7,300,000 from the operations account into the facilities account to allow for repair and rehabilitation of certain health care facilities.

Section 4504 is a technical correction to P.L. 110-5 designating the funding level for the Save America's Treasures program of the National Park Service, Historic Preservation Fund.

CHAPTER 6

DEPARTMENT OF HEALTH AND HUMAN SERVICES

NATIONAL INSTITUTES OF HEALTH

NATIONAL INSTITUTE OF ALLERGY AND INFECTIOUS DISEASES

(INCLUDING TRANSFER OF FUNDS)

The Committee recommends transferring $49,500,000 from the National Institutes of Health, National Institute of Allergy and Infectious Diseases, to the Office of the Secretary, Public Health and Social Services Emergency Fund, to support advanced research and development of biodefense countermeasures. This work is to be conducted by the Assistant Secretary for Preparedness and Response, consistent with the authority provided in the Pandemic and All-Hazards Preparedness Act.

ADMINISTRATION FOR CHILDREN AND FAMILIES

LOW-INCOME HOME ENERGY ASSISTANCE

The Committee recommends $400,000,000 for the Low-Income Home Energy Assistance State grants, including $200,000,000 for the contingent emergency reserve and $200,000,000 for block grants to States.

The Committee recommendation permits a State, or other grantee, to obligate the block grant through September 30, 2008, to address home energy needs in the event of an emergency or for crisis intervention.

OFFICE OF THE SECRETARY

PUBLIC HEALTH AND SOCIAL SERVICES EMERGENCY FUND

(INCLUDING TRANSFER OF FUNDS)

The Committee recommends $969,650,000, to remain available until expended, for the Department of Health and Human Services to prepare for and respond to an influenza pandemic. This appropriation provides the third installment of funds for pandemic influenza activities requested by the Administration. Appropriating these funds at this time enables long-term plans developed by the Department and pharmaceutical manufacturers to be based on actual appropriations. Within the total, $65,000,000 is for pandemic influenza preparedness activities of the Office of the Assistant Secretary for Preparedness and Response including global pandemic preparedness and planning, international advanced development and industrialization of human pandemic influenza vaccine, and advanced development of rapid tests and detection.

The Committee includes bill language granting the Secretary various authorities to purchase goods for the Strategic National Stockpile, to construct or renovate privately-owned facilities for the production of pandemic influenza vaccine, and to transfer funds to other HHS accounts.

The Committee includes bill language designating that not less than $34,650,000 shall be for laboratory diagnostics and analytical capabilities at the Centers for Disease Control and Prevention. The Committee intends that funding be used to increase the stock of diagnostic reagents for influenza and to establish a library of pandemic virus reference strains.

COVERED COUNTERMEASURE PROCESS FUND

The Committee includes $50,000,000, to remain available until expended, for the compensation fund established by the Public Readiness and Emergency Preparedness (PREP) Act. The Committee intends that funding be used to provide compensation to individuals harmed by the administration or use of the H5N1 influenza vaccine covered by the PREP Act declaration made by the Secretary of Health and Human Services on January 26, 2007.

GENERAL PROVISIONS--THIS CHAPTER

(INCLUDING TRANSFER OF FUNDS)

Sec. 4601. The Committee recommends extending the availability of funds previously appropriated for the Employee Benefits Security Administration and providing for a transfer of funds from the Pension Benefit Guaranty Corporation for development of an electronic Form 5500 filing system (EFAST2).

Sec. 4602. The Committee recommends extending the availability of a portion of funds previously appropriated for veterans employment and training activities within the Department of Labor.

Sec. 4603. (a) The Committee recommends a provision to enable the Department of Education to continue to obtain from the Census Bureau updated local educational agency poverty estimates that are used to determine allocations under title I of the Elementary and Secondary Education Act of 1965.

(b) The Committee includes a provision to allow funds under `Education for the Disadvantaged' of the Continuing Appropriations Resolution, 2007 to be used for comprehensive school reform activities authorized under part D of title V of the Elementary and Secondary Education Act.

Sec. 4604. The Committee recommends a provision to redistribute funding for the Assistive Technology Act in a manner consistent with the reauthorized Act.

CHAPTER 7

LEGISLATIVE BRANCH

HOUSE OF REPRESENTATIVES

PAYMENT TO WIDOWS AND HEIRS OF DECEASED MEMBERS OF CONGRESS

The Committee recommends the customary death gratuity to Gloria W. Norwood, widow of Charles W. Norwood, Jr., late Representative from the State of Georgia.

ARCHITECT OF THE CAPITOL

CAPITOL POWER PLANT

The Committee recommends an additional amount of $50,000,000 for the next two increments of a $125 million dollar project for asbestos abatement and other safety improvements to the utility tunnels throughout the Capitol complex.

CHAPTER 8

STATE, FOREIGN OPERATIONS AND RELATED PROGRAMS

DEPARTMENT OF STATE

INTERNATIONAL COMMISSIONS

INTERNATIONAL BOUNDARY AND WATER COMMISSION, UNITED STATES AND MEXICO

CONSTRUCTION

The Committee recommendation includes $10,000,000 for the International Boundary and Water Commission, United States and Mexico. The additional funds are provided to augment funding in fiscal year 2007 for the Rio Grande Flood Control System Rehabilitation project. Last year's flood of the Rio Grande River resulted in the deposit of thousands of tons of silt and debris in the river channel as it passes through El Paso, TX, severely reducing the capacity of the river channel. Should last year's weather conditions repeat themselves this year, a breach of the levees is much more likely due to the reduced capacity of the river channel. The additional funds provided to the Commission are to be directed towards emergency flood mitigation work to address the most immediate and critical dangers in order to avert a more significant disaster in the future.

GENERAL PROVISIONS--THIS CHAPTER

Sec. 4801. The Committee recommendation includes a technical change to the composition of the Board of the Middle East Foundation.

Sec. 4802. The Committee recommendation includes a technical change to the terms and conditions applicable to the Diplomatic and Consular Program funds for fiscal year 2007.

Sec. 4803. The Committee recommendation includes a technical change to the terms and conditions applicable to the funds appropriated for Debt Restructuring in fiscal year 2007.

CHAPTER 9

Sec. 4901. Allows funds provided in fiscal year 2007 for the National Transportation Safety Board to be used to make capital lease payments due in fiscal year 2007.

Sec. 4903. Exempts four categories of public housing authorities from the 12-month voucher formula in P.L. 110-5. These four categories are PHAs impacted by hurricanes in 2004 and 2005; PHAs participating in the Moving to Work Demonstration; PHAs that are in receivership; and PHAs that overspent their 2006 allocation.

Sec. 4905. Eliminates a proviso in the Fiscal Year 2007 continuing appropriations resolution regarding the Moving To Work program.

Sec. 4906. Allows for the renewal of expiring Project-Based Certificate Program projects under the Project-Based Voucher program.

GENERAL PROVISION--THIS ACT

Section 4910 states that none of the appropriations made by this Act shall remain available beyond the current fiscal year unless expressly so provided in this Act.

TITLE V--CONTRACTING REFORM

Sec. 5001, Minimizing sole-source contracts.

Spending on sole-source contracts has more than doubled in the past 6 years. Section 5001 requires agencies that spend more than $1 billion on federal contracts to develop and implement a plan to minimize the use of such contracts. The plan must contain measurable goals and be submitted to Congress within one year of enactment. The section also requires the plan to be submitted to the Comptroller General, who is required to submit an analysis of the plan to Congress within 18 months.

Sec. 5002, Minimizing cost-reimbursement type contracts.

Cost-reimbursement type contracts provide contractors with little or no incentive to control costs and leave the taxpayer vulnerable to wasteful spending. Section 5002, requires agencies that spend more than $1 billion on federal contracts to develop and implement a plan to minimize the use of such contracts. The plan must contain measurable goals and be submitted to Congress within one year of enactment. The section also requires the plan to be submitted to the Comptroller General, who is required to submit an analysis of the plan to Congress within 18 months.

Sec. 5003, Public disclosure of justification and approval documents for non-competitive contracts.

When an agency awards a sole-source contract, it must prepare a justification and approval document to explain why full and open competition was not used in awarding the contract. Section 5003, requires those justification and approval documents to be made publicly available within 14 days of the award of the contract. Classified, business-sensitive, and other information exempt from disclosure under the Freedom of Information Act is exempt from the requirements of this section.

Sec. 5004, Disclosure of government contractor overcharges.

Section 5004, promotes transparency in the federal acquisition process by requiring contract overcharges to be reported to Congress. Agencies would be required to report on a quarterly basis all contractor costs in excess of $1 million that are unjustified, unsupported, questioned, or unreasonable. The section also requires unredacted copies of any audit finding such costs to be submitted to Congress upon request.

TITLE VI--ELIMINATION OF SCHIP SHORTFALL

DEPARTMENT OF HEALTH AND HUMAN SERVICES

CENTERS FOR MEDICARE AND MEDICAID SERVICES

STATE CHILDREN'S HEALTH INSURANCE FUND

The Committee appropriates $750,000,000 in emergency funds to eliminate anticipated State Children's Health Insurance Program (SCHIP) funding shortfalls for fiscal year 2007 for fourteen States. Bill language amends the authorizing law to describe the States considered to be in shortfall.

TITLE VII

CHAPTER 1

Sections 7101-7103 contain language identical to H.R. 2, as passed by the House on January 10, 2007, relating to an increase in the Federal minimum wage. Section 7104 addresses the applicability of the minimum wage to American Samoa.

CHAPTER 2

This chapter contains language identical to H.R. 976, as passed by the House on February 16, 2007, relating to small business tax relief.

CHANGES IN THE APPLICATION OF EXISTING LAW

Pursuant to clause 3(f)(1) of rule XIII of the Rules of the House of Representatives, the following statements are submitted describing the effect of provisions in the accompanying bill that directly or indirectly change the application of existing law.

The bill includes several appropriations that are not authorized by law and as such may be construed as legislative in nature.

The bill includes several emergency appropriation designations that may be construed as legislative in nature.

Language is included that designates the various appropriations as emergency requirements directly related to the Global War on Terrorism pursuant to section 402 of H. Con. Res. 376 of the 109th Congress.

Language is included in various accounts that provides for the availability of certain funds for a period in excess of one year.

Language is included that provides for the transfer of funds under the heading `Operation and Maintenance, Navy' to be transferred to the United States Coast Guard.

Language is included under `Operation and Maintenance, Defense-Wide' which makes available not to exceed $300,000,000, to remain available until expended, for payments to certain governments for logistical and other military support to United States military operations; provides that such payments shall be based on certain documentation; and requires notification of the congressional defense committees.

Language is included that creates a strategic reserve fund for training, operations and other expenses to improve the readiness of non-deployed United States military forces; provides for the transfer (and return) of such appropriations to certain accounts; provides for purposes and duration which such funds shall be available; and provides for the notification of such transfers to the congressional defense committees.

Language is included under `Defense Health Program' which sets aside certain amounts for operation and maintenance; research, development test and evaluation activities within the total appropriation.

Language is included that provides for the transfer of funds appropriated to the Department of Defense when such transfer is in the national interest.

Language is included that provides for the obligation of funds pursuant to section 504(a)(1) of the National Security Act of 1947 (50 U.S.C. 414(a)(1)).

Language is included that prohibits the Department of Defense from using funds provided in this chapter to finance programs or activities denied by Congress in fiscal years 2006 or 2007 appropriations or to initiate a procurement or research, development, test and evaluation new start program without prior written notification to the congressional defense committees.

Language is included that provides in fiscal year 2007, the Secretary of Defense may transfer amounts in or credited to the Defense Cooperation Account; provides the availability of such funds; and requires a report to the Congress of such transfers made pursuant to any transfer.

Language is included that provides that up to $100,000,000 of the funds provided under the heading `Drug Interdiction and Counter-Drug Activities-Defense' may be used to support counter-drug activities of certain governments; provides that such support shall be in addition to support for counter-drug activities of such governments.

Language is included that provides up to $456,000,000 from funds made available from `Operation and Maintenance, Army' may be used to support the Commander's Emergency Response Fund and provides for quarterly reports.

Language is included that permits supervision and administrative costs associated with a construction project funded with appropriations available for operation and maintenance and executed in direct support of the Global War on Terrorism only in Iraq and Afghanistan may be obligated at the time a construction contract is awarded.

Language is included that amends section 9010 of Public Law 109-289, relating to reporting of measurements of stability in Iraq.

Language is included that amends section 1005(c)(2) of the National Defense Act, 2007, relating to United States' contributions to the North Atlantic Treaty Organization common-funded budget.

Language is included that prohibits the establishment of any permanent military installation or base of United States Armed Forces in Iraq and prohibits the exercise of United States control over any oil resource of Iraq.

Language is included that provides for the transfer of funds from `Operation and Maintenance, Defense-Wide' to Department of State `Economic Support Fund' to support provincial reconstruction teams and requires notification of the transfer to the congressional defense committees.

Language is included that prohibits the use of funds to contravene laws or regulations promulgated to implement the United Nations Convention Against Torture and Other Cruel, Inhuman or Degrading Treatment or Punishment.

Language is included that limits the availability of funds available in this title under the heading `Iraq Security Forces Fund' and `Afghan Security Forces Fund' until certain conditions and reporting requirements are met.

Language is provided that prohibits the provision of award fees to any defense contractor in contravention of the provisions of section 814 of the National Defense Authorization Act, 2007.

Language is provided that limits to not more than 90 percent of the funds provided in this chapter for operation and maintenance until the Secretary of Defense submits to the House and Senate Committees on Appropriations a report detailing the extent to which the United States has relied on contracted services in support of US. military operations in Iraq and Afghanistan. The provision further reduces appropriations under the aforementioned headings in this chapter by $815,000,000 due to anticipated contractor efficiencies.

Language is included that provides, in cases where a minor child is the next of kin, the ability for the service member to designate the grandparents, siblings, or guardian to receive part or all of the benefit to care for the child.

Language is included that provides up to 170 heavy and light armored vehicles for force protection purposes in Iraq and Afghanistan.

Language is included that amends section 1403(a) of the Floyd D. Spence National Defense Authorization Act for Fiscal Year 2001 (as amended).

Language is included that provides emergency appropriations to implement recommendations of the Army Inspector General with regard to trained military attorneys dedicated to representing soldiers who are pursuing claims before physical evaluation boards and earlier in the Army disability evaluation system process.

Language is included that, notwithstanding any other provision of law, prohibits the use of funds in this or any other Act to close Walter Reed Army Medical Center.

Language is included that is a Congressional pledge to fully support members of the U.S. Armed Forces in harm's way.

Language is included that is a sense of Congress regarding the President as the Commander in Chief and Congressional power to declare war.

Language is included that is a sense of Congress regarding the conduct of the war in Iraq by U.S. commanders.

Language is included prohibiting the obligation of funds for the Secretary of the Department of Homeland Security to approve a chemical site security plan unless the facility meets or exceeds security standards established by State or local governments. Bill language also clarifies that chemical security plans are designated as sensitive security information, removes restrictions on enforcement actions, and allows the Secretary to require specific security measures.

Language is included under Title I, Chapter 7 that enables various appropriations to remain available for more than one year for some programs for which the basic authority legislation does not presently authorize such extended availability.

Language is included under Title I, Chapter 7 to carryout activities not otherwise authorized by law.

Language is included under Title I, Chapter 7 which place limitations on the use of funds in the bill and as such may be construed as legislative in nature.

Language is included under Title I, Chapter 9 that prohibits the use of funds in this or any other Act to close Walter Reed Army Medical Center.

Language is included that provides that several of the appropriations shall remain available for obligation beyond the current fiscal year that may be construed as legislative in nature.

Language is included that restricts the obligation of funds made available for Iraq operations under the `Diplomatic and Consular Programs' heading that may be construed as legislative in nature.

Language is included under the heading `Diplomatic and Consular Programs' that may be construed as legislative in nature to allow up to $50,000,000 to maintain and establish a civilian reserve corps, provided that specific authorization is provided in a subsequent act of Congress for the corps.

Language is included in a general provision placing limitations on funds available to the Government of Lebanon for cash transfer assistance and Foreign Military Financing that may be construed as legislative in nature.

Language is included in a general provision placing limitations on the obligation of certain funds available for military and reconstruction operations in Iraq which may be construed as legislative in nature.

Language is included in a general provision directing the President to appoint a Coordinator for Iraq Assistance which may be construed as legislative in nature.

Language is included which changes the application of the terms and conditions of the fiscal year 2006 Department of State and Related Agency Appropriations Act, 2006 with respect to funds available under the heading `Diplomatic and Consular Programs' in fiscal year 2007 which may be construed as legislative in nature.

Language is included providing authority for funds available for debt restructuring in fiscal year 2007 to be used to assist Liberia in retiring its debt arrearages which may be construed as legislative in nature.

Language is included for National Aeronautics and Space Administration, in title II, chapter 2, which makes $48,000,000 available for costs incurred by NASA in fiscal year 2005.

Language is included for the National Oceanic and Atmospheric Administration, in title II, chapter 2, which makes $120,000,000 available for disaster relief for fisheries in the Gulf region due to the effects of Hurricane Katrina.

Language is included in title II, under Department of the Army, Corps of Engineers, which makes funds subject to authorization and requires certain reports.

Language is included that eliminates State and Local match requirement for certain federal assistance provided prior to enactment through Title IV of the Stafford Act in response to Hurricanes Katrina, Wilma, Dennis, and Rita in Louisiana, Mississippi, Florida, and Texas.

Language is included allowing FEMA to forgive Community Disaster Loans that were issued in response to Hurricane Katrina.

Language is included that permits FEMA to continue to pay for utility costs for those leases negotiated by State and local governments on FEMA's behalf.

Language is included providing extended availability and indicating that amounts appropriated under this heading are designated as an emergency requirement.

Language is included establishing affirmative directions and imposing new duties on the Secretary with respect to amounts appropriated under this heading for certain States to assist local educational agencies in rebuilding the capacity of public schools impacted by Hurricane Katrina or Hurricane Rita and providing that such amounts are designated as an emergency requirement.

Language is included imposing affirmative duties and providing flexibility to eligible States and local educational agencies in the use of emergency aid to restart school operations appropriated in Public Law 109-148.

Language is included requiring new determinations and imposing new duties with respect to amounts appropriated under this heading for institutions of higher education that are located in an area in which a major disaster was declared related to hurricanes in the Gulf of Mexico and providing that such amounts are designated as an emergency requirement.

Language is included directly amending existing law to extend waiver authority granted to the Secretary of Education in title IV of division B of Public Law 109-148 through September 30, 2008.

Language is included in title II to extend the Disaster Voucher Program to December 31, 2007.

Language is included in title II to provide an additional $10,240,000 for the Office of the Inspector General in order to conduct appropriate oversight of the resources provided for the recovery of Gulf Coast regions affected by Hurricanes Katrina and Rita.

Language is included in Title III, under the Department of Agriculture, Emergency Conservation Program, which provides funding for certain activities.

Language is included for the National Oceanic and Atmospheric Administration, in title III, chapter 2, which makes $60,400,000 available for disaster relief to those affected by a declared salmon fishery disaster.

Language is included in Title IV, under Chapter 1, General Provisions, regarding allowable uses of certain funds provided in previous appropriations Acts.

Language is included in Title IV, under Chapter 1, General Provisions, relating to the availability of funds until certain conditions are met.

Language is included to amend the Help America Vote Act of 2002 (Public Law 107-252).

Language is included extending until the end of fiscal year 2007 two provisos contained in the fiscal year 2006 Salaries and Expenses appropriation for Customs and Border Protection that relate to Border Patrol checkpoints in the Tucson sector.

Language is included tightening Coast Guard procurement practices and mandates a number of changes to current procurement practices. In addition, the bill prohibits the obligation of any 2007 funding appropriated to the Deepwater program until the Coast Guard prepares a robust expenditure plan that is reviewed by the Government Accountability Office.

Language is included limiting the Department of Homeland Security's use of lead system integrator contracts.

Language is included making a technical correction to the Bureau of Indian Affairs language in the Continuing Appropriations Resolution, 2007 (division B of Public Law 109-289, as amended by Public Law 110-5) so the Bureau may pay certain contract support costs.

Language is included making a technical correction to the Continuing Appropriations Resolution, 2007 (division B of Public Law 109-289, as amended by Public Law 110-5) to allow the Indian Health Service to pay certain contract support costs and to allow the Service to transfer up to $7,300,000 from the operations account into the facilities account to allow for repair and rehabilitation of certain health care facilities.

Language is included making a technical correction to the Continuing Appropriations Resolution, 2007 (division B of Public Law 109-289, as amended by Public Law 110-5) to designate the funding level for the Save America's Treasures program of the National Park Service, Historic Preservation Fund.

Language is included granting new authority to State officials and providing that amounts appropriated under this heading are designated as an emergency requirement.

Language is included conferring new authority to the Secretary and waiving existing law with respect to amounts appropriated under this heading and providing that such amounts shall remain available until expended and are designated as an emergency requirement.

Language is included providing that amounts appropriated under this heading shall remain available until expended and are designated as an emergency requirement.

Language is included directly amending existing law to extend availability for funds provided to the Employee Benefits Security Administration.

Language is included directly amending existing law to extend availability for funds provided to Veterans Employment and Training.

Language is included directly amending existing law to provide for updated local educational agency poverty estimates and a clearinghouse on comprehensive school reform.

Language is included waiving the application of existing law with respect to the distribution of funding for the Assistive Technology Act.

Language is included which changes the application of the terms and conditions of the fiscal year 2006 Department of State and Related Agency Appropriations Act, 2006 with respect to funds available under the heading `Diplomatic and Consular Programs' in fiscal year 2007 which may be construed as legislative in nature.

Language is included providing authority for funds available for debt restructuring in fiscal year 2007 to be used to assist Liberia in retiring its debt arrearages which may be construed as legislative in nature.

Language is included to allow funds provided for the National Transportation Safety Board to be used to make capital lease payments due in fiscal year 2007.

Language is included in title IV to clarify funding levels for the Tenant-Based Rental Assistance account.

Language is included in title IV to exempt four categories of public housing authorities from the 12-month voucher formula in P.L. 110-5. These four categories are PHAS impacted by hurricanes in 2004 and 2005; PHAs participating in the Moving To Work Demonstration; PHAs that are in receivership; and PHAs that overspent their 2006 allocation.

Language is included in title IV to authorize OFHEO's funding at $67,568,000, to be reimbursed from the Federal Housing Enterprise Oversight Fund.

Language is included in title IV to eliminate a proviso in the Fiscal Year 2007 continuing appropriations resolution regarding the Moving To Work program.

Language is included in title IV to allow for the renewal of expiring ProjectBased Certificate Program projects under the Project-Based Voucher program.

Language is included relating to Contracting Reform.

Language is included providing that amounts appropriated under this heading shall remain available until expended and are designated an emergency requirement.

Language is included directly amending existing law to provide additional funding to the State Children's Hospital Insurance (SCHIP) program to certain States.

Language is included relating to an increase in the Federal minimum wage.

Language is included relating to small business tax relief.

TRANSFER OF FUNDS

Pursuant to clause 3(f)(2) of rule XIII of the Rules of the House of Representatives, the following is submitted describing the transfer of funds provided in the accompanying bill:

Language is included that provides for the transfer of $120,293,000 from funds appropriated under `Operation and Maintenance, Navy' to the Coast Guard for reimbursement for activities in support of activities requested by the Navy.

Language is included under `Strategic Reserve Readiness Fund' which provides for the transfer of such appropriations to various operations and maintenance accounts within the Department of Defense.

Language is included that provides for the transfer of funds under the heading `Operation and Maintenance, Navy' to be transferred to the United States Coast Guard.

Language is included under `Drug-Interdiction and Counter-Drug Activities, Defense' which provides for the transfer of such funds only to appropriations for military personnel; operation and maintenance; procurement; and research, development, test and evaluation.

Language is included that provides for the transfer of funds appropriated to the Department of Defense in this Act when such transfer is in the national interest.

Language is included that provides in fiscal year 2007, the Secretary of Defense may transfer amounts in or credited to the Defense Cooperation Account; provides the availability of such funds; and requires a report to the Congress of such transfers made pursuant to any transfer.

Language is included that provides for the transfer of funds from `Operation and Maintenance, Defense-Wide' to Department of State `Economic Support Fund' to support provincial reconstruction teams and requires notification of the transfer to the congressional defense committees.

Language is included that provides for the transfer of $225,400,000 from US Navy, Operations and Maintenance to US Coast Guard, Operating Expenses.

Language is included that provides for the transfer of $1,000,000 from CBP, Salaries and Expenses to FLETC, Salaries and Expenses.

Language is included that provides for the transfer of $4,000,000 from FEMA, Disaster Relief to the Office of the Inspector General.

Language is included that provides for the transfer of $7,300,000 from Department of Health and Human Services, Indian Health Services, Indian Health Services to Department of Health and Human Services, Indian Health Services, Indian Health Facilities.

Language is included that provides for the transfer of $49,500,000 from Department of Health and Human Services, National Institutes of Health, National Institute of Allergy and Infectious Diseases to Department of Health and Human Services, Office of the Secretary, Public Health and Social Services Emergency Fund.

Language is included that provides for the transfer of $34,650,000 from Department of Health and Human Services, Office of the Secretary, Public Health and Social Services Emergency Fund to Centers for Disease Control and Prevention, Disease Control, Research and Training.

Language is included that provides for the transfer of $7,000,000 from Department of Labor, Pension Benefit Guaranty Corporation to Department of Labor, Employee Benefits Security Administration.

Under `Department of State, Administration of Foreign Affairs, Diplomatic and Consular Programs' $258,000 is to be transferred to, and merged with, funds available in fiscal year 2007 for the United States Commission on International Religious Freedom.

Under `Department of State, Administration of Foreign Affairs, Office of Inspector General' $45,500,000 shall be transferred to the Special Inspector General for Iraq Reconstruction.'

RESCISSIONS

Pursuant to clause 3(f)(2) of rule XIII of the Rules of the House of Representatives, the following table is submitted describing the rescissions recommended in the accompanying bill:

APPROPRIATIONS NOT AUTHORIZED BY LAW

Pursuant to clause 3(f)(1) of rule XIII of the Rules of the House of Representatives, the following table lists the appropriations in the accompanying bill which are not authorized by law:

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COMPARISON WITH THE BUDGET RESOLUTION

Section 308(a)(1)(A) of the Congressional Budget Act requires the report accompanying a bill providing new budget authority to contain a statement comparing the levels in the bill to the suballocations submitted under section 302(b) of the Act for the most recently agreed to concurrent resolution on the budget for the applicable fiscal year. That information is provided in the table headed `Comparison of Reported Bill to Section 302(b) Suballocations'.

Most appropriations in the bill are designated as emergency requirements under section 402 of H. Con. Res. 376 (109th Congress), as made applicable to the House of Representatives by section 511(a)(4) of H. Res. 6 (110th Congress). Pursuant to section 402 of H. Con. Res. 376, such amounts are not counted against the allocations under section 302 of the Budget Act, and are therefore not reflected in the accompanying table. New discretionary budget authority in the bill designated under section 402 totals $111,281,839,000.

In addition, $12,976,439,000 in discretionary appropriations are designated as emergency requirements under section 501 of H. Con. Res. 376. Appropriations designated under that section are counted for purposes of section 302 of the Budget Act, with H. Con. Res. 376 providing a mechanism for the Budget Committee to make an offsetting adjustment to the section 302 allocations. The `Comparison of Reported Bill to Section 302(b) Suballocations' table shows the amounts of these emergency appropriations.

As the table indicates, excluding amounts designated as emergency requirements under section 501 of H. Con. Res. 376, enactment of the reported bill would leave the Committee on Appropriations slightly below its section 302(a) allocation for new discretionary budget authority, and would also leave all but one of the Appropriations subcommittees at or below its section 302(b) suballocation. (The one exception is the Defense Subcommittee, which would be $1 million over its suballocation because of an amendment adopted during the Committee markup.)

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FIVE-YEAR OUTLAY PROJECTIONS

In compliance with section 308(a)(1)(B) of the Congressional Budget Act, the following table contains five-year projections associated with the budget authority provided in the accompanying bill:

--------------------------------

--------------------------------

Budget Authority, 2007 $124,330

Outlays:

2007 31,526

2008 49,606

2009 26,114

2010 11,783

2011 and beyond 9,318

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The Committee is also advised by the Congressional Budget Office that they would score the bill as increasing budget authority by $447 million in FY 2008, $449 million in FY 2009, $445 million in FY 2010, $436 million in FY 2011, and by a total of $2,672 million in fiscal years 2012 through 2017. All of these amounts (other than $1 million in FY 2008) result from the language in title VI alleviating the FY 2007 shortfall in the State Children's Health Insurance Program (SCHIP). The Committee did not intend that provision to provide any new budget authority in years after FY 2007, and the Chairman intends to offer an amendment at the appropriate time making the necessary technical correction so that no new budget authority is scored for this provision in FY 2008 and subsequent years.

ASSISTANCE TO STATE AND LOCAL GOVERNMENTS

In accordance with section 308(a)(1)(C) of the Congressional Budget and Impoundment Control Act of 1974 (Public Law 93-344), as amended, the financial assistance to State and local governments is as follows:

----------------------------------------------------

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Budget Authority $4,548

Fiscal Year 2007 outlays resulting therefrom 1,440

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REVENUES AND COMPLIANCE WITH PAY-AS-YOU-GO RULE

Chapter 2 of title VII of the bill affects revenues. The Committee is advised that the net effect of provisions in that chapter would be to reduce revenues by $162 million in FY 2007, increase revenues by a total of $225 million over the six-year period from FY 2007 through FY 2012, and increase revenues by a total of $45 million over the 11-year period from FY 2007 through FY 2017. The latter two periods are those that would be used for determining compliance with the House `pay-as-you-go rule (clause 10 of Rule XXI).

CONSTITUTIONAL AUTHORITY

Clause 3(d)(1) of rule XIII of the Rules of the House of Representatives states that:

Each report of a committee on a bill or joint resolution of a public character, shall include a statement citing the specific powers granted to the Congress in the Constitution to enact the law proposed by the bill or joint resolution.

The Committee on Appropriations bases its authority to report this legislation from Clause 7 of Section 9 of Article I of the Constitution of the United States of America, which states:

No money shall be drawn from the Treasury but in consequence of Appropriations made by law. . .

Appropriations contained in this Act are made pursuant to this specific power granted by the Constitution.

STATEMENT OF GENERAL PERFORMANCE GOALS AND OBJECTIVES

Pursuant to clause 3(c)(4) of rule XIII of the Rules of the House of Representatives, the following is a statement of general performance goals and objectives for which this measure authorizes funding:

The Committee on Appropriations considers program performance, including a program's success in developing and attaining outcome-related goals and objectives, in developing funding recommendations.

EARMARKS

Pursuant to clause 9 of rule XXI of the Rules of the House of Representatives, this bill, as reported, contains no congressional earmarks, limited tax benefits, or limited tariff benefits as defined in clause 9(d), 9(e), or 9(f) of rule XXI.

COMPLIANCE WITH CLAUSE 3 OF RULE XIII (RAMSEYER RULE)

In compliance with clause 3(e) of rule XIII of the Rules of the House of Representatives, changes in existing law made by the bill, as reported, are shown as follows (existing law proposed to be omitted is enclosed in black brackets, new matter is printed in italic, existing law in which no change is proposed is shown in roman):

DEPARTMENT OF DEFENSE APPROPRIATIONS ACT, 2007

(Public Law 109-289, Division A)

DIVISION A--DEPARTMENT OF DEFENSE APPROPRIATIONS ACT, 2007

* * * * * * *

GENERAL PROVISIONS

* * * * * * *

SEC. 9007. Amounts provided in this title for operations in Iraq and Afghanistan may be used by the Department of Defense for the purchase of up to [Struck out->][ 20 ][<-Struck out] 170 heavy and light armored vehicles for force protection purposes, notwithstanding price or other limitations specified elsewhere in this Act, or any other provision of law: Provided, That the Secretary of Defense shall submit a report in writing no later than 30 days after the end of each fiscal quarter notifying the congressional defense committees of any purchase described in this section, including the cost, purposes, and quantities of vehicles purchased.

* * * * * * *

SEC. 9010. (a) Not later than 60 days after the date of the enactment of this Act and every 90 days thereafter through the end of fiscal year [Struck out->][ 2007 ][<-Struck out] 2008, the Secretary of Defense shall set forth in a report to Congress a comprehensive set of performance indicators and measures for progress toward military and political stability in Iraq.

* * * * * * *

(c) In specific, the report requires, at a minimum, the following:

(1) * * *

(2) With respect to the training and performance of security forces in Iraq, the following:

(A) * * *

* * * * * * *

(J) An assessment, in a classified annex if necessary, of United States military requirements, including planned force rotations, through the end of calendar year [Struck out->][ 2007 ][<-Struck out] 2008.

* * * * * * *

CONTINUING APPROPRIATIONS RESOLUTION, 2007

(Public Law 109-289, Division B)

DIVISION B--CONTINUING APPROPRIATIONS RESOLUTION, 2007

* * * * * * *

CHAPTER 5--DEPARTMENT OF THE INTERIOR, ENVIRONMENT, AND RELATED AGENCIES

Sec. 20501. Notwithstanding section 101, the level for each of the following accounts shall be as follows: `Bureau of Land Management, Management of Lands and Resources', $862,632,000; `United States Fish and Wildlife Service, Resource Management', $1,009,037,000; `National Park Service, Historic Preservation Fund', $55,663,000 of which $13,000,000 shall be for Save America's Treasures; `United States Geological Survey, Surveys, Investigations, and Research', $977,675,000; and `Environmental Protection Agency, Hazardous Substance Superfund', $1,251,574,000.

* * * * * * *

Sec. 20512. Notwithstanding section 101, the level for `Indian Health Service, Indian Health Services', shall be $2,817,099,000, of which, not to exceed $5,000,000 shall be available, in addition to amounts otherwise available, for contract support costs; and of which, not to exceed $7,300,000 may be transferred to the `Indian Health Facilities' account, and the $15,000,000 allocation of funding under the eleventh proviso shall not be required.

* * * * * * *

Sec. 20515. Notwithstanding section 101, the level for `Bureau of Indian Affairs, Operation of Indian Programs' shall be $1,984,190,000, of which not less than $75,477,000 is for post-secondary education programs; and of which, not to exceed $9,019,000 shall be available, in addition to amounts otherwise available, for contract support costs.

* * * * * * *

CHAPTER 6--DEPARTMENTS OF LABOR, HEALTH AND HUMAN SERVICES, AND EDUCATION, AND RELATED AGENCIES

* * * * * * *

Sec. 20602. Notwithstanding section 101, the level for `Employee Benefits Security Administration, Salaries and Expenses' shall be $140,834,000, [Struck out->][ of which no less than $5,000,000 shall be ][<-Struck out] of which $7,500,000 (together with an additional $7,000,000 which shall be transferred by the Pension Benefit Guaranty Corporation as an authorized administrative cost) shall be available when needed through September 30, 2008, for the development of an electronic Form 5500 filing system (EFAST2).

* * * * * * *

Sec. 20608. (a) Notwithstanding section 101, the level for `Veterans Employment and Training, Salaries and Expenses' shall not exceed $193,753,000 which may be derived from the Employment Security Administration Account in the Unemployment Trust Fund to carry out the provisions of sections 4100 through 4113, 4211 through 4215, and 4321 through 4327 of title 38, United States Code, and Public Law 103-353, and which shall be available for obligation by the States through December 31, 2007, of which $1,967,000 is for the National Veterans Employment and Training Services Institute.

* * * * * * *

Sec. 20625. (a) * * *

(b) Of the amount provided in subsection (a)--

(1) [Struck out->][ $7,172,994,000 ][<-Struck out] $7,176,431,000 shall become available on July 1, 2007, and shall remain available through September 30, 2008, of which: [Struck out->][ (A) $5,451,387,000 shall be for basic grants under section 1124 of the Elementary and Secondary Education Act of 1965 (ESEA); ][<-Struck out] (A) $5,454,824,000 shall be for basic grants under section 1124 of the Elementary and Secondary Education Act of 1965 (ESEA), of which up to $3,437,000 shall be available to the Secretary of Education on October 1, 2006, to obtain annually updated educational-agency-level census poverty data from the Bureau of the Census; (B) $125,000,000 shall be for school improvement grants authorized under section 1003(g) of the ESEA; and [Struck out->][ (C) not to exceed $2,352,000 shall be available for section 1608 of the ESEA; ][<-Struck out] (C) not to exceed $2,352,000 may be available for section 1608 of the ESEA and for a clearinghouse on comprehensive school reform under part D of title V of the ESEA; and

* * * * * * *

CHAPTER 10--TRANSPORTATION, TREASURY, HOUSING AND URBAN DEVELOPMENT, THE JUDICIARY, THE DISTRICT OF COLUMBIA, AND INDEPENDENT AGENCIES

* * * * * * *

Sec. 21033. Notwithstanding section 101, the level for `Department of Housing and Urban Development, Public and Indian Housing, Tenant-Based Rental Assistance' shall be $15,920,000,000, to remain available until expended, of which $11,727,000,000 shall be available on October 1, 2006, and notwithstanding section 109, $4,193,000,000 shall be available on October 1, 2007: Provided, That paragraph (1) under such heading in Public Law 109-115 (119 Stat. 2440) shall not apply to funds appropriated by this division: Provided further, That of the amounts available for such heading, $14,436,200,000 shall be for renewals of expiring section 8 tenant-based annual contributions contracts (including renewals of enhanced vouchers under any provision of law authorizing such assistance under section 8(t) of the United States Housing Act of 1937, as amended (42 U.S.C. 1437 et seq.) (`the Act' herein)): Provided further, That paragraph (2) under such heading in Public Law 109-115 (119 Stat. 2441) shall be funded at $149,300,000, but additional section 8 tenant protection rental assistance costs may be funded in 2007 by using unobligated balances, notwithstanding the purposes for which such amounts were appropriated, including recaptures and carryover, remaining from funds appropriated to the Department of Housing and Urban Development under this heading, the heading `Annual Contributions for Assisted Housing', the heading `Housing Certificate Fund', and the heading `Project-Based Rental Assistance' for fiscal year 2006 and prior fiscal years: Provided further, That paragraph (3) under such heading in Public Law 109-115 (119 Stat. 2441) shall be funded at $47,500,000: Provided further, That paragraph (4) under such heading in Public Law 109-115 (119 Stat. 2441) shall be funded at $5,900,000: Provided further, That paragraph (5) under such heading in Public Law 109-115 (119 Stat. 2441) shall be funded at $1,281,100,000, of which $1,251,100,000 shall be allocated for the calendar year 2007 funding cycle on a pro rata basis to public housing agencies based on the amount public housing agencies were eligible to receive in calendar year 2006, and of which up to $30,000,000 shall be available to the Secretary to allocate to public housing agencies that need additional funds to administer their section 8 programs, with up to $20,000,000 to be for fees associated with section 8 tenant protection rental assistance: Provided further, That notwithstanding any other provision of law, from amounts provided under the second proviso under this section the Secretary shall, for the calendar year 2007 funding cycle, provide renewal funding for each public housing agency based on voucher management system (VMS) leasing and cost data for the most recently completed period of 12 consecutive months for which the Secretary determines the data is verifiable and complete, prior to prorations, and by applying the 2007 Annual Adjustment Factor as established by the Secretary, and by making any necessary adjustments for the costs associated with the first-time renewal of tenant protection or HOPE VI vouchers or vouchers that were not in use during the 12-month period in order to be available to meet a commitment pursuant to section 8(o)(13) of the Act: Provided further, That notwithstanding the previous proviso, except for applying the 2007 Annual Adjustment Factor and making any other specified adjustments, public housing agencies in the following categories shall receive renewal funding for calendar year 2007 equal to the amounts, prior to prorations, such public housing agencies were eligible to receive in calendar year 2006, prorated at the calendar year 2006 rate: (1) public housing agencies that would receive less funding under the previous proviso than they would receive under this proviso and that are located in any area declared a major disaster under the Robert T. Stafford Disaster Relief and Emergency Act (42 U.S.C. 1521 et seq.) with respect to hurricanes that occurred in calendar years 2004 and 2005; (2) public housing agencies participating in the Moving to Work Demonstration; (3) public housing agencies that, during calendar year 2007 but prior to June 1, 2007, are in receivership, or the Department of Housing and Urban Development has declared to be in breach of an Annual Contributions Contract; or (4) public housing agencies that overspent their allocation for calendar year 2006 and available housing assistance payments balance from calendar year 2005: Provided further, That the Secretary shall, to the extent necessary to stay within the amount provided under the second proviso under this section, pro rate each public housing agency's allocation otherwise established pursuant to this section: Provided further, That except as provided in the following proviso, the entire amount provided under the second proviso under this section shall be obligated to the public housing agencies based on the allocation and pro rata method described above: [Struck out->][Provided further, That public housing agencies participating in the Moving to Work demonstration shall be funded pursuant to their Moving to Work agreements and shall be subject to the same pro rata adjustments under the previous proviso: ][<-Struck out] Providedfurther, That from amounts provided under the second proviso of this section up to $100,000,000 shall be available only: (1) for adjustments for public housing agencies that experienced a significant increase, as determined by the Secretary, in renewal costs resulting from unforeseen circumstances or from the portability under section 8(r) of the Act of tenant-based rental assistance; and (2) for adjustments for public housing agencies that could experience a significant decrease in voucher funding that could result in the risk of loss of voucher units due to the shift to using VMS data based on a 12-month period: Provided further, That none of the funds provided under the second proviso of this section may be used to support a total number of unit months under lease which exceeds a public housing agency's authorized level of units under contract.

* * * * * * *

SEC. 21041A. The provisions under the heading `Department of Housing and Urban Development, Office of Federal Housing Enterprise Oversight, Salaries and Expenses' in title III of division A of Public Law 109-115 shall be applied to funds appropriated by this division by substituting `$67,568,000' for `$60,000,000'.

* * * * * * *

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SECTION 1005 PUBLIC LAW 109-364

SEC. 1005. UNITED STATES CONTRIBUTION TO NATO COMMON-FUNDED BUDGETS IN FISCAL YEAR 2007.

(a) * * *

* * * * * * *

(c) Authorized Amounts- Amounts authorized to be appropriated by titles II and III of this Act are available for contributions for the common-funded budgets of NATO as follows:

(1) * * *

(2) Of the amount provided in section 301(1), [Struck out->][ $310,277,000 ][<-Struck out] $376,446,000 for the Military Budget.

* * * * * * *

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TITLE 10, UNITED STATES CODE

* * * * * * *

Subtitle A--General Military Law

* * * * * * *

PART II--PERSONNEL

* * * * * * *

CHAPTER 75--DECEASED PERSONNEL

* * * * * * *

SUBCHAPTER II--DEATH BENEFITS

* * * * * * *

Sec. 1477. Death gratuity: eligible survivors

(a) [Struck out->][ A death gratuity ][<-Struck out] Subject to subsection (d), a death gratuity payable upon the death of a person covered by section 1475 or 1476 of this title shall be paid to or for the living survivor highest on the following list:

(1) * * *

* * * * * * *

(d) During the period beginning on the date of the enactment of this subsection and ending on September 30, 2007, a person covered by section 1475 or 1476 of this title may designate another person to receive not more than 50 percent of the amount payable under section 1478 of this title. The designation shall indicate the percentage of the amount, to be specified only in 10 percent increments up to the maximum of 50 percent, that the designated person may receive. The balance of the amount of the death gratuity shall be paid to or for the living survivors of the person concerned in accordance with paragraphs (1) through (5) of subsection (a).

[Struck out->][ (d) If an eligible survivor dies before he ][<-Struck out] (e) If a person entitled to all or a portion of a death gratuity under subsection (a) or (d) dies before the person receives the death gratuity, it shall be paid to the living survivor next in the order prescribed by subsection (a).

* * * * * * *

PART IV--SERVICE, SUPPLY, AND PROCUREMENT

* * * * * * *

CHAPTER 137--PROCUREMENT GENERALLY

* * * * * * *

Sec. 2304. Contracts: competition requirements

(a) * * *

* * * * * * *

(l)(1) In the case of a procurement permitted by subsection (c), the head of an agency shall make publicly available, within 14 days after the award of the contract, the documents containing the justification and approval required by subsection (f)(1) with respect to the procurement.

(2) The documents shall be made available on the website of the agency and through the Federal Procurement Data System.

(3) This subsection does not require the public availability of information that is exempt from public disclosure under section 552(b) of title 5, United States Code.

SEC. 550. (a) No later than six months after the date of enactment of this Act, the Secretary of Homeland Security shall issue interim final regulations establishing risk-based performance standards for security of chemical facilities and requiring vulnerability assessments and the development and implementation of site security plans for chemical facilities: Provided, That such regulations shall apply to chemical facilities that, in the discretion of the Secretary, present high levels of security risk: Provided further, That such regulations shall permit each such facility, in developing and implementing site security plans, to select layered security measures that, in combination, appropriately address the vulnerability assessment and the risk-based performance standards for security for the facility: Provided further, That [Struck out->][ the Secretary may not disapprove a site security plan submitted under this section based on the presence or absence of a particular security measure, but ][<-Struck out] the Secretary may disapprove a site security plan if the plan fails to satisfy the risk-based performance standards established by this section: Provided further, That the Secretary may approve alternative security programs established by private sector entities, Federal, State, or local authorities, or other applicable laws if the Secretary determines that the requirements of such programs meet the requirements of this section and the interim regulations: Provided further, That the Secretary shall review and approve each vulnerability assessment and site security plan required under this section: Provided further, That the Secretary shall not apply regulations issued pursuant to this section to facilities regulated pursuant to the Maritime Transportation Security Act of 2002, Public Law 107-295, as amended; Public Water Systems, as defined by section 1401 of the Safe Drinking Water Act, Public Law 93-523, as amended; Treatment Works as defined in section 212 of the Federal Water Pollution Control Act, Public Law 92-500, as amended; any facility owned or operated by the Department of Defense or the Department of Energy, or any facility subject to regulation by the Nuclear Regulatory Commission.

* * * * * * *

(c) Notwithstanding any other provision of law and subsection (b), information developed under this section, including vulnerability assessments, site security plans, and other security related information, records, and documents shall be given protections from public disclosure [Struck out->][ consistent with similar ][<-Struck out] identical to the protections given information developed by chemical facilities subject to regulation under section 70103 of title 46, United States Code: Provided, That this subsection does not prohibit the sharing of such information, as the Secretary deems appropriate, with State and local government officials possessing the necessary security clearances, including law enforcement officials and first responders, for the purpose of carrying out this section, provided that such information may not be disclosed pursuant to any State or local law: Provided further, That in any proceeding to enforce this section, vulnerability assessments [Struck out->][ , site security plans, and other information submitted to or obtained by the Secretary under this section, and related vulnerability or security information, shall be treated as if the information were classified material ][<-Struck out] and site security plans shall be treated as sensitive security information (as that term is used in section 1520.5 of title 49, Code of Federal Regulations).

(d) Any person who violates an order issued under this section shall be liable for a civil penalty under section 70119(a) of title 46, United States Code [Struck out->][ : Provided, That nothing in this section confers upon any person except the Secretary a right of action against an owner or operator of a chemical facility to enforce any provision of this section ][<-Struck out] .

* * * * * * *

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SECTION 3001 OF THE EMERGENCY SUPPLEMENTAL APPROPRIATIONS ACT FOR DEFENSE AND FOR THE RECONSTRUCTION OF IRAQ AND AFGHANISTAN, 2004

SEC. 3001. SPECIAL INSPECTOR GENERAL FOR IRAQ RECONSTRUCTION.

(a) * * *

* * * * * * *

(o) Termination- (1)(A) * * *

(B) For purposes of calculating the termination of the Office of the Inspector General under this subsection, any United States funds appropriated or otherwise made available for [Struck out->][ fiscal year 2006 ][<-Struck out] fiscal years 2006, 2007, or 2008 for the reconstruction of Iraq, irrespective of the designation of such funds, shall be deemed to be amounts appropriated or otherwise made available to the Iraq Relief and Reconstruction Fund.

* * * * * * *

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SECTION 2 OF THE COMMUNITY DISASTER LOAN ACT OF 2005

SEC. 2. DISASTER LOANS.

(a) Essential Services- Of the amounts provided in Public Law 109-62 for `Disaster Relief', up to $750,000,000 may be transferred to the Disaster Assistance Direct Loan Program for the cost of direct loans as authorized under section 417 of the Robert T. Stafford Disaster Relief and Emergency Assistance Act (42 U.S.C. 5184) to be used to assist local governments in providing essential services: Provided, That such transfer may be made to subsidize gross obligations for the principal amount of direct loans not to exceed $1,000,000,000 under section 417 of the Stafford Act: Provided further, That notwithstanding section 417(b) of the Stafford Act, the amount of any such loan issued pursuant to this section may exceed $5,000,000: [Struck out->][Provided further, That notwithstanding section 417(c)(1) of the Stafford Act, such loans may not be canceled: ][<-Struck out] Provided further, That the cost of modifying such loans shall be as defined in section 502 of the Congressional Budget Act of 1974 (2 U.S.C. 661a).

* * * * * * *

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EMERGENCY SUPPLEMENTAL APPROPRIATIONS ACT FOR DEFENSE, THE GLOBAL WAR ON TERROR, AND HURRICANE RECOVERY, 2006

* * * * * * *

TITLE II

FURTHER HURRICANE DISASTER RELIEF AND RECOVERY

* * * * * * *

CHAPTER 4

DEPARTMENT OF HOMELAND SECURITY

* * * * * * *

FEDERAL EMERGENCY MANAGEMENT AGENCY

* * * * * * *

DISASTER ASSISTANCE DIRECT LOAN PROGRAM ACCOUNT

For an additional amount for `Disaster Assistance Direct Loan Program Account' for the cost of direct loans as authorized under section 417 of the Robert T. Stafford Disaster Relief and Emergency Assistance Act (42 U.S.C. 5184), $279,800,000, to be used to assist local governments affected by Hurricane Katrina and other hurricanes of the 2005 season in providing essential services, of which $1,000,000 is for administrative expenses to carry out the direct loan program: Provided, That such funds may be made to subsidize gross obligations for the principal amount of direct loans not to exceed $371,733,000: Provided further, That notwithstanding section 417(b) of such Act, the amount of any such loan issued pursuant to this section may exceed $5,000,000, and may be equal to not more than 50 percent of the annual operating budget of the local government in any case in which that local government has suffered a loss of 25 percent or more in tax revenues due to Hurricane Katrina or Hurricane Rita: [Struck out->][Provided further, That notwithstanding section 417(c)(1) of such Act, such loans may not be canceled: ][<-Struck out] Provided further, That the cost of modifying such loans shall be as defined in section 502 of the Congressional Budget Act of 1974 (2 U.S.C. 661a): Provided further, That the amounts provided under this heading are designated as an emergency requirement pursuant to section 402 of H. Con. Res. 95 (109th Congress), the concurrent resolution on the budget for fiscal year 2006.

* * * * * * *

GENERAL PROVISIONS--THIS CHAPTER

SEC. 2401. The Federal Emergency Management Agency may provide funds to a State or local government or, as necessary, assume an existing agreement from such unit of government, to pay for utility costs resulting from the provision of temporary housing units to evacuees from Hurricane Katrina and other hurricanes of the 2005 season if the State or local government has previously arranged to pay for such utilities on behalf of the evacuees for the term of any leases, not to exceed [Struck out->][ 12 ][<-Struck out] 24 months, contracted by or prior to February 7, 2006: Provided, That the Federal share of the costs eligible to be paid shall be 100 percent.

* * * * * * *

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DEPARTEMENT OF DEFENSE, EMERGENCY SUPPLEMENTAL APPROPRIATIONS ACT TO ADDRESS HURRICANES IN THE GULF OF MEXICO AND PANDEMIC INFLUENZA, 2006

(Public Law 109-148)

DIVISION B

* * * * * * *

TITLE IV--HURRICANE EDUCATION RECOVERY ACT

Subtitle A--Elementary and Secondary Education Hurricane Relief

* * * * * * *

SEC. 105. REGULATORY AND FINANCIAL RELIEF.

(a) * * *

(b) Duration- A waiver under this section shall be for the fiscal year 2006 and, at the discretion of the Secretary, for fiscal year 2007. With respect to the program authorized by section 102 of this Act, the waiver authority in subsection (a) of this section shall be available until the end of fiscal year 2008.

* * * * * * *

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SECTION 102 OF THE HELP AMERICA VOTE ACT OF 2002

SEC. 102. REPLACEMENT OF PUNCH CARD OR LEVER VOTING MACHINES.

(a) ESTABLISHMENT OF PROGRAM-

(1) * * *

* * * * * * *

(3) DEADLINE-

(A) * * *

(B) WAIVER- If a State certifies to the Administrator not later than January 1, 2004, that the State will not meet the deadline described in subparagraph (A) for good cause and includes in the certification the reasons for the failure to meet such deadline, the State shall ensure that all of the punch card voting systems or lever voting systems in the qualifying precincts within that State will be replaced in time for the first election for Federal office held after [Struck out->][ January 1, 2006 ][<-Struck out] January 1, 2008.

SPECIAL AUTHORITIES

SEC. 534. (a) * * *

* * * * * * *

(k) MIDDLE EAST FOUNDATION- Of the funds appropriated by this Act under the heading `Economic Support Fund' that are available for the Middle East Partnership Initiative, up to $35,000,000 may be made available, including as an endowment, notwithstanding any other provision of law and following consultations with the Committees on Appropriations, to establish and operate a Middle East Foundation, or any other similar entity, whose purpose is to support democracy, governance, human rights, and the rule of law in the Middle East region: Provided, That such funds may be made available to the Foundation only to the extent that the Foundation has commitments from sources other than the United States Government to at least match the funds provided under the authority of this subsection: Provided further, That provisions contained in section 201 of the Support for East European Democracy (SEED) Act of 1989 (excluding the authorizations of appropriations provided in subsection (b) of that section and the requirement that a majority of the members of the board of directors be United States citizens provided in subsection (d)(3)(B) of that section) shall be deemed to apply to any such foundation or similar entity referred to under this subsection, and to funds made available to such entity, in order to enable it to provide assistance for purposes of this section: Provided further, That prior to the initial obligation of funds for any such foundation or similar entity pursuant to the authorities of this subsection, other than for administrative support, the Secretary of State shall take steps to ensure, on an ongoing basis, that any such funds made available pursuant to such authorities are not provided to or through any individual or group that the management of the foundation or similar entity knows or has reason to believe, advocates, plans, sponsors, or otherwise engages in terrorist activities: Provided further, That section 530 of this Act shall apply to any such foundation or similar entity established pursuant to this subsection: Provided further, That the authority of the Foundation, or any similar entity, to provide assistance shall cease to be effective on September 30, 2010.

* * * * * * *

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SECTION 232 OF THE DEPARTMENTS OF VETERANS AFFAIRS AND HOUSING AND URBAN DEVELOPMENT, AND INDEPENDENT AGENCIES APPROPRIATIONS ACT, 2001

SECTION 8 PHA PROJECT-BASED ASSISTANCE

SEC. 232. (a) * * *

[Struck out->][ (b) APPLICABILITY- In the case of any dwelling unit that, upon the date of the enactment of this Act, is assisted under a housing assistance payment contract under section 8(o)(13) of the United States Housing Act of 1937 (42 U.S.C. 1437f(o)(13)) as in effect before such enactment, such assistance may be extended or renewed notwithstanding the requirements under subparagraphs (C), (D), and (E) of such section 8(o)(13), as amended by subsection (a). ][<-Struck out]

(b) APPLICABILITY- In the case of any dwelling unit that, upon the date of the enactment of this Act, is assisted under a housing assistance payment contract under section 8(o)(13) as in effect before such enactment, or under section 8(d)(2) of the United States Housing Act of 1937 (42 U.S.C. 1437f(d)(2)) as in effect before the enactment of the Quality Housing and Work Responsibility Act of 1998 (title V of Public Law 105-276), assistance may be renewed or extended under such section 8(o)(13), as amended by subsection (a), provided that the initial contract term and rent of such renewed or extended assistance shall be determined pursuant to subparagraphs (F) and (H), and subparagraphs (C) and (D) of such section shall not apply to such extensions or renewals.

* * * * * * *

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SECTION 303 OF THE FEDERAL PROPERTY AND ADMINISTRATIVE SERVICES ACT OF 1949

SEC. 303. COMPETITION REQUIREMENTS.

(a) * * *

* * * * * * *

(j)(1) In the case of a procurement permitted by subsection (c), the head of an executive agency shall make publicly available, within 14 days after the award of the contract, the documents containing the justification and approval required by subsection (f)(1) with respect to the procurement.

(2) The documents shall be made available on the website of the agency and through the Federal Procurement Data System.

(3) This subsection does not require the public availability of information that is exempt from public disclosure under section 552(b) of title 5, United States Code.

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SOCIAL SECURITY ACT

SELF-EMPLOYMENT

SEC. 211. For the purposes of this title--

NET EARNINGS FROM SELF-EMPLOYMENT

(a) The term `net earnings from self-employment' means the gross income, as computed under subtitle A of the Internal Revenue Code of 1986, derived by an individual from any trade or business carried on by such individual, less the deductions allowed under such subtitle which are attributable to such trade or business, plus his distributive share (whether or not distributed) of the ordinary net income or loss, as computed under section 702(a)(8) of such Code, from any trade or business carried on by a partnership of which he is a member; except that in computing such gross income and deductions and such distributive share of partnership ordinary net income or loss--

(1) * * *

* * * * * * *

(14) There shall be excluded income excluded from taxation under section 7873 of the Internal Revenue Code of 1986 (relating to income derived by Indians from exercise of fishing rights); [Struck out->][ and ][<-Struck out]

(16) Notwithstanding the preceding provisions of this subsection, each spouse's share of income or loss from a qualified joint venture shall be taken into account as provided in section 761(f) of the Internal Revenue Code of 1986 in determining net earnings from self-employment of such spouse.

* * * * * * *

TITLE XXI--STATE CHILDREN'S HEALTH INSURANCE PROGRAM

* * * * * * *

SEC. 2104. ALLOTMENTS.

(a) * * *

* * * * * * *

(h) Special Rules to Address Fiscal Year 2007 Shortfalls-

(1) REDISTRIBUTION OF UNUSED FISCAL YEAR 2004 ALLOTMENTS-

(A) * * *

(B) SHORTFALL STATE DESCRIBED- For purposes of this paragraph, a shortfall State described in this subparagraph is a State with a State child health plan approved under this title for which the Secretary estimates, [Struck out->][ subject to paragraph (4)(B) and ][<-Struck out] on a monthly basis using the most recent data available to the Secretary as of such month, that the projected expenditures under such plan for such State for fiscal year 2007 will exceed the sum of--

(i) * * *

* * * * * * *

(2) FUNDING [Struck out->][ REMAINDER OF REDUCTION ][<-Struck out] PART OF SHORTFALL FOR FISCAL YEAR 2007 THROUGH REDISTRIBUTION OF CERTAIN UNUSED FISCAL YEAR 2005 ALLOTMENTS-

(A) * * *

(B) SHORTFALL STATE DESCRIBED- For purposes of this paragraph, a shortfall State described in this subparagraph is a State with a State child health plan approved under this title for which the Secretary estimates, [Struck out->][ subject to paragraph (4)(B) and ][<-Struck out] on a monthly basis using the most recent data available to the Secretary as of March 31, 2007, that the projected expenditures under such plan for such State for fiscal year 2007 will exceed the sum of--

(i) * * *

* * * * * * *

[Struck out->][ (4) SPECIAL RULES- ][<-Struck out]

[Struck out->][ (A) EXPENDITURES LIMITED TO COVERAGE FOR POPULATIONS ELIGIBLE ON OCTOBER 1, 2006- A State shall use amounts redistributed under this subsection only for expenditures for providing child health assistance or other health benefits coverage for populations eligible for such assistance or benefits under the State child health plan (including under a waiver of such plan) on October 1, 2006. ][<-Struck out]

[Struck out->][ (B) REGULAR FMAP FOR EXPENDITURES FOR COVERAGE OF NONCHILD POPULATIONS- To the extent a State uses amounts redistributed under this subsection for expenditures for providing child health assistance or other health benefits coverage to an individual who is not a child or a pregnant woman, the Federal medical assistance percentage (as defined in the first sentence of section 1905(b)) applicable to the State for the fiscal year shall apply to such expenditures for purposes of making payments to the State under subsection (a) of section 2105 from such amounts. ][<-Struck out]

(A) IN GENERAL- From the amounts provided in advance in appropriations Acts, the Secretary shall allot to each remaining shortfall State described in subparagraph (B) such amount as the Secretary determines will eliminate the estimated shortfall described in such subparagraph for the State for fiscal year 2007.

(B) REMAINING SHORTFALL STATE DESCRIBED- For purposes of subparagraph (A), a remaining shortfall State is a State with a State child health plan approved under this title for which the Secretary estimates, on the basis of the most recent data available to the Secretary as of the date of the enactment of this paragraph, that the projected federal expenditures under such plan for the State for fiscal year 2007 will exceed the sum of--

(i) the amount of the State's allotments for each of fiscal years 2005 and 2006 that will not be expended by the end of fiscal year 2006;

(ii) the amount of the State's allotment for fiscal year 2007; and

(iii) the amounts, if any, that are to be redistributed to the State during fiscal year 2007 in accordance with paragraphs (1) and (2).

(5) RETROSPECTIVE ADJUSTMENT-

(A) IN GENERAL- The Secretary may adjust the estimates and determinations made under paragraphs (1), (2), [Struck out->][ and (3) ][<-Struck out] (3), and (4) as necessary on the basis of the amounts reported by States not later than November 30, 2007, on CMS Form 64 or CMS Form 21, as the case may be and as approved by the Secretary, but in no case may the applicable amount described in paragraph (3)(C)(ii) exceed the amount determined by the Secretary on the basis of the most recent data available to the Secretary as of March 31, 2007.

* * * * * * *

(6) 1-year availability; no further redistribution- Notwithstanding subsections (e) and (f), amounts redistributed to a State pursuant to this subsection for fiscal year 2007 shall only remain available for expenditure by the State through September 30, 2007, and any amounts of such redistributions that remain unexpended as of such date, shall not be subject to redistribution under subsection (f). Nothing in the preceding sentence shall be construed as limiting the ability of the Secretary to adjust the determinations made under paragraphs (1), (2), [Struck out->][ and (3) ][<-Struck out] (3), and (4) in accordance with paragraph (5).

* * * * * * *

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SECTION 6 OF THE FAIR LABOR STANDARDS ACT OF 1938

MINIMUM WAGES

SEC. 6. (a) Every employer shall pay to each of his employees who in any workweek is engaged in commerce or in the production of goods for commerce, or is employed in an enterprise engaged in commerce or in the production of goods for commerce, wages at the following rates:

[Struck out->][ (1) except as otherwise provided in this section, not less than $4.25 an hour during the period ending on September 30, 1996, not less than $4.75 an hour during the year beginning on October 1, 1996, and not less than $5.15 an hour beginning September 1, 1997; ][<-Struck out]

(1) except as otherwise provided in this section, not less than--

(A) $5.85 an hour, beginning on the 60th day after the date of enactment of the Fair Minimum Wage Act of 2007;

(B) $6.55 an hour, beginning 12 months after that 60th day; and

(C) $7.25 an hour, beginning 24 months after that 60th day;

* * * * * * *

[Struck out->][ (3) if such employee is employed in American Samoa, in lieu of the rate or rates provided by this subsection or subsection (b), not less than the applicable rate established by the Secretary of Labor in accordance with recommendations of a special industry committee or committees which he shall appoint pursuant to sections 5 and 8. The minimum wage rate thus established shall not exceed the rate prescribed in paragraph (1) of this subsection; ][<-Struck out]

[Struck out->][ (4) ][<-Struck out] (3) if such employee is employed as a seaman on an American vessel, not less than the rate which will provide to the employee, for the period covered by the wage payment, wages equal to compensation at the hourly rate prescribed by paragraph (1) of this subsection for all hours during such period when he was actually on duty (including periods aboard ship when the employee was on watch or was, at the direction of a superior officer, performing work or standing by, but not including off-duty periods which are provided pursuant to the employment agreement); or

[Struck out->][ (5) ][<-Struck out] (4) if such employee is employed in agriculture, not less than the minimum wage rate in effect under paragraph (1) after December 31, 1977.

* * * * * * *

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INTERNAL REVENUE CODE OF 1986

* * * * * * *

Subtitle A--Income Taxes

* * * * * * *

CHAPTER 1--NORMAL TAXES AND SURTAXES

* * * * * * *

Subchapter A--Determination of Tax Liability

* * * * * * *

PART I--TAX ON INDIVIDUALS

* * * * * * *

SEC. 1. TAX IMPOSED.

(a) * * *

* * * * * * *

(h) MAXIMUM CAPITAL GAINS RATE-

(1) * * *

* * * * * * *

(12) CERTAIN INDIVIDUALS NOT ELIGIBLE FOR LOWEST RATE-

(A) IN GENERAL- In the case of an individual described in subparagraph (B)--

(i) the amount determined under paragraph (1)(A)(ii)(II) shall not be less than the amount of taxable income which would (without regard to this subsection) be taxed at a rate below 15 percent,

(ii) the sum of the amounts determined under subparagraphs (B) and (C) of paragraph (1) shall be an amount equal to the rate of tax specified in paragraph (1)(C) multiplied by so much of the adjusted net capital gain (or, if less, taxable income) as exceeds the excess (if any) of--

(I) the amount of taxable income which would (without regard to this subsection) be taxed at a rate below 15 percent, over

(II) the taxable income reduced by the adjusted net capital gain, and

(iii) no amount of qualified 5-year gain shall be taken into account under subparagraph (A) of paragraph (2) (as in effect after the application of section 303 of the Jobs and Growth Tax Relief Reconciliation Act of 2003).

(B) INDIVIDUALS TO WHOM PARAGRAPH APPLIES-

(i) IN GENERAL- For purposes of this paragraph, an individual is described in this subparagraph if--

(I) such individual meets the age requirements of section 152(c)(3) (determined without regard to subparagraph (B) thereof), and

(II) such individual's earned income (as defined in section 911(d)(2)) for the taxable year does not exceed one-half of such individual's support (within the meaning of section 152) for such taxable year.

(ii) SPECIAL RULES FOR JOINT RETURNS- In the case of a joint return--

(I) the taxpayer and the taxpayer's spouse shall be treated as a single individual for purposes of applying subclause (II) of clause (i), and

(II) the taxpayer shall be treated as an individual described in this subparagraph only if the taxpayer and the taxpayer's spouse are described in clause (i) (determined after application of subclause (I)).

* * * * * * *

PART IV--CREDIT AGAINST TAX

* * * * * * *

SUBPART D-- BUSINESS RELATED CREDITS

* * * * * * *

SEC. 38. GENERAL BUSINESS CREDIT.

(a) * * *

* * * * * * *

(c) LIMITATION BASED ON AMOUNT OF TAX-

(1) * * *

* * * * * * *

(4) SPECIAL RULES FOR SPECIFIED CREDITS-

(A) * * *

(B) SPECIFIED CREDITS- For purposes of this subsection, the term `specified credits' means--

(i) for taxable years beginning after December 31, 2004, the credit determined under section 40, [Struck out->][ and ][<-Struck out]

(ii) the credit determined under section 45 to the extent that such credit is attributable to electricity or refined coal produced--

(I) at a facility which is originally placed in service after the date of the enactment of this paragraph, and

(II) during the 4-year period beginning on the date that such facility was originally placed in service,

(b) EXCESS EMPLOYER SOCIAL SECURITY TAX- For purposes of this section--

(1) IN GENERAL- The term `excess employer social security tax' means any tax paid by an employer under section 3111 with respect to tips received by an employee during any month, to the extent such tips--

(A) * * *

(B) exceed the amount by which the wages (excluding tips) paid by the employer to the employee during such month are less than the total amount which would be payable (with respect to such employment) at the minimum wage rate applicable to such individual under section 6(a)(1) of the Fair Labor Standards Act of 1938 (as in effect on January 1, 2007, and determined without regard to section 3(m) of such Act).

* * * * * * *

SUBPART F--RULES FOR COMPUTING WORK OPPPORTUNITY CREDIT

* * * * * * *

SEC. 51. AMOUNT OF CREDIT.

(a) * * *

(b) QUALIFIED WAGES DEFINED- For purposes of this subpart--

(1) * * *

* * * * * * *

(3) [Struck out->][ ONLY FIRST $6,000 OF ][<-Struck out] LIMITATION ON WAGES PER YEAR TAKEN INTO ACCOUNT- The amount of the qualified first-year wages which may be taken into account with respect to any individual shall not exceed $6,000 per year ($12,000 per year in the case of any individual who is a qualified veteran by reason of subsection (d)(3)(A)(ii)).

(c) WAGES DEFINED- For purposes of this subpart--

(1) * * *

* * * * * * *

(4) TERMINATION- The term `wages' shall not include any amount paid or incurred to an individual who begins work for the employer--

(A) * * *

(B) after December 31, [Struck out->][ 2007 ][<-Struck out] 2008.

(d) MEMBERS OF TARGETED GROUPS- For purposes of this subpart--

(1) IN GENERAL- An individual is a member of a targeted group if such individual is--

(A) * * *

* * * * * * *

[Struck out->][ (D) a high-risk youth, ][<-Struck out]

(D) a designated community resident,

* * * * * * *

(3) QUALIFIED VETERAN-

(A) The term `qualified veteran' means any veteran who is certified by the designated local [Struck out->][ agency as being a member of a family receiving assistance under a food stamp program under the Food Stamp Act of 1977 for at least a 3-month period ending during the 12-month period ending on the hiring date. ][<-Struck out] agency as--

(i) being a member of a family receiving assistance under a food stamp program under the Food Stamp Act of 1977 for at least a 3-month period ending during the 12-month period ending on the hiring date, or

(ii) entitled to compensation for a service-connected disability, and--

(I) having a hiring date which is not more that 1 year after having been discharged or released from active duty in the Armed Forces of the United States, or

(II) having aggregate periods of unemployment during the 1-year period ending on the hiring date which equal or exceed 6 months.

* * * * * * *

(C) OTHER DEFINITIONS- For purposes of subparagraph (A), the terms `compensation' and `service-connected' have the meanings given such terms under section 101 of title 38, United States Code.

* * * * * * *

[Struck out->][ (5) HIGH-RISK YOUTH- ][<-Struck out]

[Struck out->][ (A) IN GENERAL- The term `high-risk youth' means any individual who is certified by the designated local agency-- ][<-Struck out]

[Struck out->][ (i) as having attained age 18 but not age 25 on the hiring date, and ][<-Struck out]

[Struck out->][ (ii) as having his principal place of abode within an empowerment zone, enterprise community, or renewal community. ][<-Struck out]

[Struck out->][ (B) YOUTH MUST CONTINUE TO RESIDE IN ZONE OR COMMUNITY- In the case of a high-risk youth, the term `qualified wages' shall not include wages paid or incurred for services performed while such youth's principal place of abode is outside an empowerment zone, enterprise community, or renewal community. ][<-Struck out]

(5) DESIGNATED COMMUNITY RESIDENTS-

(A) IN GENERAL- The term `designated community resident' means any individual who is certified by the designated local agency--

(i) as having attained age 18 but not age 40 on the hiring date, and

(ii) as having his principal place of abode within an empowerment zone, enterprise community, or renewal community.

(B) INDIVIDUAL MUST CONTINUE TO RESIDE IN ZONE OR COMMUNITY- In the case of a designated community resident, the term `qualified wages' shall not include wages paid or incurred for services performed while the individual's principal place of abode is outside an empowerment zone, enterprise community, or renewal community.

(6) VOCATIONAL REHABILITATION REFERRAL- The term `vocational rehabilitation referral' means any individual who is certified by the designated local agency as--

(A) * * *

(B) having been referred to the employer upon completion of (or while receiving) rehabilitative services pursuant to--

(i) an individualized written plan for employment under a State plan for vocational rehabilitation services approved under the Rehabilitation Act of 1973, [Struck out->][ or ][<-Struck out]

(ii) a program of vocational rehabilitation carried out under chapter 31 of title 38, United States Code [Struck out->][ . ][<-Struck out] , or

(iii) an individual work plan developed and implemented by an employment network pursuant to subsection (g) of section 1148 of the Social Security Act with respect to which the requirements of such subsection are met.

* * * * * * *

PART VI--ALTERNATIVE MINIMUM TAX

* * * * * * *

SEC. 55. ALTERNATIVE MINIMUM TAX IMPOSED.

(a) * * *

* * * * * * *

(f) Certain Individuals Not Eligible for Lowest Rate- In the case of an individual described in section 1(h)(12)(B), no amount shall be determined under subsection (b)(3)(B).

* * * * * * *

Subchapter B--Computation of Taxable Income

* * * * * * *

PART VI--ITEMIZED DEDUCTIONS FOR INDIVIDUALS AND CORPORATIONS

* * * * * * *

SEC. 179. ELECTION TO EXPENSE CERTAIN DEPRECIABLE BUSINESS ASSETS.

(a) * * *

(b) LIMITATIONS-

(1) DOLLAR LIMITATION- The aggregate cost which may be taken into account under subsection (a) for any taxable year shall not exceed $25,000 ( [Struck out->][ $100,000 in the case of taxable years beginning after 2002 ][<-Struck out] $125,000 in the case of taxable years beginning after 2006 and before [Struck out->][ 2010 ][<-Struck out] 2011).

(2) REDUCTION IN LIMITATION- The limitation under paragraph (1) for any taxable year shall be reduced (but not below zero) by the amount by which the cost of section 179 property placed in service during such taxable year exceeds $200,000 ( [Struck out->][ $400,000 in the case of taxable years beginning after 2002 ][<-Struck out] $500,000 in the case of taxable years beginning after 2006 and before [Struck out->][ 2010 ][<-Struck out] 2011).

* * * * * * *

(5) INFLATION ADJUSTMENTS-

(A) IN GENERAL- In the case of any taxable year beginning in a calendar year after [Struck out->][ 2003 ][<-Struck out] 2007 and before [Struck out->][ 2010 ][<-Struck out] 2011, the [Struck out->][ $100,000 and $400,000 ][<-Struck out] $125,000 and $500,000 amounts in paragraphs (1) and (2) shall each be increased by an amount equal to--

(i) such dollar amount, multiplied by

(ii) the cost-of-living adjustment determined under section 1(f)(3) for the calendar year in which the taxable year begins, by substituting `calendar year [Struck out->][ 2002 ][<-Struck out] 2006' for `calendar year 1992' in subparagraph (B) thereof.

* * * * * * *

(c) ELECTION-

(1) * * *

(2) ELECTION IRREVOCABLE- Any election made under this section, and any specification contained in any such election, may not be revoked except with the consent of the Secretary. Any such election or specification with respect to any taxable year beginning after 2002 and before [Struck out->][ 2010 ][<-Struck out] 2011 may be revoked by the taxpayer with respect to any property, and such revocation, once made, shall be irrevocable.

(d) DEFINITIONS AND SPECIAL RULES-

(1) SECTION 179 PROPERTY- For purposes of this section, the term `section 179 property' means property--

(A) which is--

(i) tangible property (to which section 168 applies), or

(ii) computer software (as defined in section 197(e)(3)(B)) which is described in section 197(e)(3)(A)(i), to which section 167 applies, and which is placed in service in a taxable year beginning after 2002 and before [Struck out->][ 2010 ][<-Struck out] 2011,

* * * * * * *

Subchapter K--Partners and Parnerships

* * * * * * *

PART III--DEFINITIONS

* * * * * * *

SEC. 761. TERMS DEFINED.

(a) * * *

* * * * * * *

(f) Qualified Joint Venture-

(1) IN GENERAL- In the case of a qualified joint venture conducted by a husband and wife who file a joint return for the taxable year, for purposes of this title--

(A) such joint venture shall not be treated as a partnership,

(B) all items of income, gain, loss, deduction, and credit shall be divided between the spouses in accordance with their respective interests in the venture, and

(C) each spouse shall take into account such spouse's respective share of such items as if they were attributable to a trade or business conducted by such spouse as a sole proprietor.

(2) QUALIFIED JOINT VENTURE- For purposes of paragraph (1), the term `qualified joint venture' means any joint venture involving the conduct of a trade or business if--

(A) the only members of such joint venture are a husband and wife,

(B) both spouses materially participate (within the meaning of section 469(h) without regard to paragraph (5) thereof) in such trade or business, and

(C) both spouses elect the application of this subsection.

[Struck out->][ (f) ][<-Struck out] (g) CROSS REFERENCE-

For rules in the case of the sale, exchange, liquidation, or reduction of a partner's interest, see sections 704(b) and 706(c)(2).

* * * * * * *

CHAPTER 2--TAX ON SELF-EMPLOYMENT INCOME

* * * * * * *

SEC. 1402. DEFINITIONS

(a) NET EARNINGS FROM SELF-EMPLOYMENT- The term `net earnings from self-employment' means the gross income derived by an individual from any trade or business carried on by such individual, less the deductions allowed by this subtitle which are attributable to such trade or business, plus his distributive share (whether or not distributed) of income or loss described in section 702(a)(8) from any trade or business carried on by a partnership of which he is a member; except that in computing such gross income and deductions and such distributive share of partnership ordinary income or loss--

(1) * * *

* * * * * * *

(15) in the case of a member of an Indian tribe, the special rules of section 7873 (relating to income derived by Indians from exercise of fishing rights) shall apply [Struck out->][ , and ][<-Struck out] ;

(17) notwithstanding the preceding provisions of this subsection, each spouse's share of income or loss from a qualified joint venture shall be taken into account as provided in section 761(f) in determining net earnings from self-employment of such spouse.

* * * * * * *

Subtitle F--Procedure and Administration

* * * * * * *

CHAPTER 65--ABATEMENTS, CREDITS, AND REFUNDS

* * * * * * *

Subchapter A--Procedure in General

* * * * * * *

SEC. 6404. ABATEMENTS.

(a) * * *

* * * * * * *

(g) SUSPENSION OF INTEREST AND CERTAIN PENALTIES WHERE SECRETARY FAILS TO CONTACT TAXPAYER-

(1) SUSPENSION-

(A) IN GENERAL- In the case of an individual who files a return of tax imposed by subtitle A for a taxable year on or before the due date for the return (including extensions), if the Secretary does not provide a notice to the taxpayer specifically stating the taxpayer's liability and the basis for the liability before the close of the [Struck out->][ 18-month period ][<-Struck out] 22-month period beginning on the later of--

(i) * * *

* * * * * * *

(3) SUSPENSION PERIOD- For purposes of this subsection, the term `suspension period' means the period--

(A) beginning on the day after the close of the [Struck out->][ 18-month period ][<-Struck out] 22-month period under paragraph (1); and

* * * * * * *

-

SECTION 401 OF THE TAX INCREASE PREVENTION AND RECONCILIATION ACT OF 2005

SEC. 401. TIME FOR PAYMENT OF CORPORATE ESTIMATED TAXES.

Notwithstanding section 6655 of the Internal Revenue Code of 1986--

(1) in the case of a corporation with assets of not less than $1,000,000,000 (determined as of the end of the preceding taxable year)--

(A) * * *

(B) the amount of any required installment of corporate estimated tax which is otherwise due in July, August, or September of 2012 shall be [Struck out->][ 106.25 percent ][<-Struck out] 112.75 percent of such amount,

* * * * * * *

-

SECTION 1403 OF THE FLOYD D. SPENCE NATIONAL DEFENSE AUTHORIZATION ACT FOR FISCAL YEAR 2001

SEC. 1403. REPORTS.

(a) Final Report- Not later than [Struck out->][ September 30, 2007 ][<-Struck out] June 30, 2008, the Commission shall submit to Congress a report providing the Commission's assessment of the matters specified in section 1402. That report shall include recommendations for any steps the Commission believes should be taken by the United States to better protect systems referred to in section 1402(1) from an EMP attack.

* * * * * * *

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MINORITY VIEWS SUBMITTED BY MR. LEWIS

There is no question that if Chairman Obey was permitted to write this bill on his own, it would be a much better product. Instead, the House is being asked to consider a spending bill that reflects the priorities of Speaker Pelosi and a deeply divided Democratic Caucus. It attempts to bridge these widening divisions over the War in Iraq by delivering billions of dollars in unrelated and unauthorized spending under an emergency designation.

This legislation ought to focus on our troops. It ought to focus on providing those in harm's way with the resources they need to complete their mission successfully. It ought to respect--not micromanage--our combatant commanders in whom we place the ultimate responsibility of prosecuting military actions.

Instead, this legislation continues the majority's `slow bleed' strategy by tying the hands of our Commander-in-Chief during a time of war; places military decisions in the hands of politicians; and attempts to buy votes for its passage--on the left and on the right--by literally promising something to everyone.

If the majority's goal is to end the war or withdraw our troops, then that should be addressed in separate legislation. The majority cannot have it both ways, pretending on the one hand to support our troops while, on the other hand, undercutting their ability to complete their mission.

Men and women of good conscience can disagree about the war in Iraq. But on one thing we must all agree--our men and women in uniform must continue to receive our unqualified support and the resources they need to complete their mission successfully.

All Members should consider carefully the consequences of their actions regarding this legislation. Enactment of this measure in its present form will signal to insurgents and terrorists that the United States doesn't have the political will to continue supporting this fledgling Iraqi democracy.

Al Qaeda and other enemies of freedom will simply lay in wait until our troops are withdrawn. And, with the collapse of this fragile democracy, our efforts--and the sacrifices of our troops--will have been for nothing.

The fight in Iraq is also critical to the future of Israel. A failure in Iraq will further destabilize the region, posing a direct threat to Israel. We must not let that occur to our friend and ally.

There should be no carrot big enough to force Members into choosing between their principled support of our troops in the field and funding for the many unrelated, parochial items sprinkled throughout this bill.

Republican Members of this committee--and in the House--are simply not going to abandon our principles--and troops in the field--for the promise of pork back in our districts. To their credit, many Democrats continue to express grave reservations about this approach--and this legislation.

Last year, Congress sent to the President a clean supplemental spending bill for our troops. This Congress would be better served by sending a clean bill, free of extraneous spending and unrelated legislative provisions, in order to continue funding for our troops who stand in harm's way. However, as a result of the extraneous spending included in this bill, as well as the unrelated authorizing provisions, it will take months to complete work on a final bill that the President can sign. In the meantime, our troops will face the uncertainty that stems from not understanding whether the majority party is committed to providing the resources necessary in a timely fashion for them to complete their mission successfully.

LEWIS-YOUNG AMENDMENT

During full Committee consideration of this measure, Mr. Lewis and Mr. Young offered an amendment to strike Sections 1901-1904 and insert the text of H.R. 511. In addition to striking the provisions that tie the President's hands in an unprecedented and likely unconstitutional manner, the amendment pledged the faithful support of Congress to the members of the United States Armed Forces serving in harm's way by specifically stating that `Congress will not cut off or restrict funding for units and members of the Armed Forces that the Commander-in-Chief has deployed in harm's way in support of Operation Iraqi Freedom and Operation Enduring Freedom.' Sadly, Committee Democrats voted in lockstep (37-27) to reject the Lewis-Young language, replacing it with feel good platitudes in lieu of an iron-clad guarantee of financial support. Their vote creates the dangerous precedent of tying the President's hands during a time of war, and sends an ominous message to our men and women in uniform.

YOUNG AMENDMENT

On behalf of those Members of Congress who advocate an immediate withdrawal from Iraq, Mr. Young offered an amendment that would have funded the immediate withdrawal of our military forces from Iraq. The amendment was defeated unanimously (0-64), drawing the votes of several members who have long advocated for this immediate withdrawal. It is unfathomable that the majority, on one hand, unanimously rejects the immediate withdrawal of troops; proceeds to vote against a declaration that Congress will not cut off funding for those same troops; and then supports legislation that requires troops to begin withdrawing by the arbitrary deadline of March 1, 2008 at the latest. Members of the majority party are mandating a withdrawal from Iraq using a legislative sleight of hand, but won't admit to it with a direct vote on the matter.

CONSTITUTIONAL IMPACT

While the bill proposes egregious micromanagement with respect to Iraq, there is an even more disturbing consequence with respect to its impact on the U.S. Constitution. The delineation of powers between the Executive and the Legislative branches is quite clear--and is even reflected in an amendment adopted by the Appropriations Committee during

consideration of the bill. Specifically, that amendment identifies the President as Commander-in-Chief. Sadly, the majority included text in the bill that restricts the manner in which the Commander-in-Chief is permitted to deploy the Armed Forces of the United States. If Congress wishes to end military operations in Iraq, its only constitutional recourse is to cut off funding--a notion the Appropriations Committee unanimously rejected.

EXTRANEOUS SPENDING

To make matters worse, this bill proposes more than $22 billion in emergency spending items that are completely unrelated to the troops, veterans' health, and Iraq. The majority has gone on a shopping spree, including many items designated as emergencies, to entice the support of Members while simultaneously making room for additional spending under the fiscal year 2008 spending caps.

What does a $25 million bail out for spinach producers, $60 million for the salmon fishing industry, or $5 million for aquaculture have to do with our troops, veterans' health or Iraq, as the short title of the bill suggests.

The bill includes nearly $1 billion in emergency funding for activities related to avian influenza. This is a fiscally irresponsible attempt to off-load $1 billion in spending that ought to be considered in the regular FY08 appropriations process. In FY06, Congress provided $5.6 billion in emergency funding for this purpose, and included additional funding in the FY07 omnibus appropriations bill. Today, half-way through FY07, more than $2.6 billion of that money remains unspent. The Department of Health and Human Services requested the funds this bill designates as an emergency in the FY08 Labor-HHS bill--without an emergency designation.

The bill also includes $750 million for the State Children's Health Insurance Program--a mandatory program under the jurisdiction of the Energy and Commerce Committee. If there is a shortfall in some states that are unable to live within their means, it should be addressed by the committee of jurisdiction--not in a supplemental spending bill that purports to be for our troops, veterans' health, and Iraq.

Additionally, the supplemental includes over $7 billion for programs under the jurisdiction of the Homeland Security Subcommittee, almost $3.5 billion over the President's request. While almost two-thirds is for disaster relief, the remaining $2.5 billion was added to address so-called FY07 emergencies. Many of the majority's funding increases are for worthy and important items such as nuclear and explosive detection systems and additional aircraft for the northern border. However, they should in no way be considered an FY07 emergency. In every instance these items could, and should be, addressed in the regular FY08 appropriations process. By including them as an FY07 emergency, the majority is simply trying to look strong on security and buy down requirements to free up funds in FY08 for additional spending. As we have demonstrated through our past action, while we certainly support Homeland Security spending, we support such spending within the confines of the Budget Resolution without the emergency designation when no true emergency exists.

The agriculture-related provisions in the supplemental, which are far too numerous and costly to mention individually, were developed without any opportunity for input from the Ranking Minority Member nor from any of the other Republican Members of the Agriculture Subcommittee. Some of the more egregious examples include $5 million for aquaculture and $25 million for spinach producers. Clearly, this type of spending does not have a place in a wartime emergency supplemental bill.

Furthermore, this legislation includes authorization language to increase the minimum wage. Again, why can't the committees of jurisdiction in the House and Senate meet in open conference to resolve the differences between these two bills? What place has this provision in a wartime supplemental? Quite simply, it is included at the behest of the Democrat leadership for no other reason than to act as a sweetener, to appeal to those who, for varying reasons, believe the Iraq policy included in this spending bill is misguided and wrong.

Lastly, the bill includes an entire title on contracting `reform.' To our knowledge, there is no crisis in contracting--nothing that would suggest that this legislation is an emergency. Perhaps the reforms are necessary, perhaps not. That is a question better addressed by the authorizing committees of jurisdiction rather than the Appropriations Committee. What is certain is that this issue ought to be considered in regular order, not by `airdropping' it into this supplemental spending bill.

CONCLUSION

It is clear that Chairman Obey has been asked to carry egregious spending and legislative provisions by Speaker Pelosi and the majority leadership without regard for the constitutional prerogatives of the Commander-in-Chief, without regard for the strategic and tactical expertise of our combatant commanders in the field, and without regard for the morale of our troops who faithfully execute their duly authorized mission. It is in the best interest of our troops to send a clean bill to the President--a bill that provides the financial resources necessary for our troops and for our veterans. The President has stated unequivocally that he will veto this legislation, a decision that we in the minority strongly endorse.